ABLV Bank offers several innovations in products and services. They include new issues of ABLV Bank and New Hanza Capitalbonds, management of funds allocated to the second pension pillar, and other news.

New Issues of ABLV Bank Bonds

ABLV Bank continues the bond issue programme launched in 2011, under which the bank has performed 43 public bond issues so far, their total face value equalling EUR 1.4 billion. Under the Seventh Bond Offer Programme, ABLV Bank will perform three new issues of the bonds in October this year, and those will be admitted to the regulated market — Nasdaq Riga Baltic Bond List.

Parameters of the issues are stated below.

• Coupon bond issue of USD 75 000 000
  (issue name: ABLV FXD USD 271019; ISIN: LV0000802320)
  The issue size is USD 75 000 000. The number of bonds is 75 000. The face value of one bond is USD 1 000. The annual interest rate is fixed: 2.15% with coupon payment twice a year. Initial placement price: 100% of the face value. The issue date is 27 October 2017, and the maturity date is 27 October 2019.

• Coupon bond issue of EUR 20 000 000
  (issue name: ABLV FXD EUR 271019; ISIN: LV0000802338)
  The issue size is EUR 20 000 000. The number of bonds is 20 000. The face value of one bond is EUR 1 000. The annual interest rate is fixed: 0.95% with coupon payment twice a year. Initial placement price: 100% of the face value. The issue date is 27 October 2017, and the maturity date is 27 October 2019.
   
• Discount bond issue of EUR 25 000 000 for the sake of raising subordinated capital
  (issue name: ABLV SUB EUR 271027; ISIN: LV0000802346)
  The issue size is EUR 25 000 000. The number of bonds is 250 000. The face value of one bond is EUR 100. Initial placement price: 83.047% of the face value. The issue date is 27 October 2017, and the maturity date is 27 October 2027. The bank may redeem these bonds before maturity starting from 27 October 2022.
  Annual interest rate of subordinated bonds:
  • from 27 October 2017 till 27 October 2022 — fixed discount rate of 3.75%;
  • from 28 October 2022 till 27 October 2027 — fixed coupon rate of 3.75% with coupon payment twice a year.

The subscription to the abovementioned bond issues begins on 21 September 2017 and will last until 23 October.

Issue of New Hanza Capital Bonds

Given the development of its property portfolio and the growing transaction amounts, commercial property investment company New Hanza Capital decided to launch bond issue programme for the sake of acquiring new investors and raising additional capital for implementation of the company’s business plans. New Hanza Capital bond issues are supposed to be performed on a regular basis — once a year, in autumn.

The size of the first bond issue is planned to be EUR 10 million. Subscription to the bonds was started on 18 September 2017, and it will last till 6 October 2017. Following the issue, the bonds are supposed to be admitted to Nasdaq Riga regulated market, and therefore those will be available to wide range of investors in the secondary market.

Parameters of the issue:
Coupon bond issue of EUR 10 000 000
(issue name: NHC FXD EUR 161022; ISIN: LV0000802312)
The issue size is EUR 10 000 000.The number of bonds is 10 000. The face value of one bond is EUR 1 000. The annual interest rate is fixed: 4.9% with coupon payment twice a year. Initial placement price: 100% of the face value. The issue date is 16 October 2017, and the maturity date is 16 October 2022.The issuer may exercise the call option starting from the third year.

The bond issue is arranged by ABLV Bank, which made the necessary documents under the bond issue and will also perform initial placement of the bonds. Having accrued the experience and knowledge of debt securities issuing, from 2016 ABLV Bank offers the issue arrangement service to its clients and cooperation partners.

New Hanza Capital, AS was established in 2006. The objective of its operations is investing own funds and funds of third parties in commercial properties, reaching sustainable increase in the rent income and ensuring long-term growth in the property value and capital. The largest shareholder of New Hanza Capital, AS is ABLV Bank, AS, which holds 88% of the company’s shares. The company’s portfolio of commercial properties includes airBaltic central office in Riga airport, logistics centre in Ķekava municipality, and other properties.

Entering into Pension Capital Management

ABLV Bank subsidiary ABLV Asset Management, IPAS will offer to all residents of Latvia a new 2nd pension pillar investment plan, ABLV Active Investment Plan, as of 2 October. Its manager is the Deputy Chairman of the Board of ABLV Asset Management, IPAS Jevgenijs Gžibovskis, who has more than 15-year experience of managing various investment portfolios and funds, including ABLV Emerging Markets USD Bond Fund and ABLV Emerging Markets EUR Bond Fund management during last 10 years.

Active strategy has been chosen for our second pension pillar investment plan, which enables the return exceeding the inflation level. According to this strategy, the objective of ABLV Active Investment Plan is to preserve and increase the value of contributions made to the investment plan in the long term, by making investments in the financial and capital market. To achieve the objective, at least half of the investment plan funds will be invested in fixed-income financial instruments and term deposits with credit institutions, which ensure stable increase in the investment plan value, protecting it against short-term fluctuations. To gain higher return in the long term, the other part of the investment plan funds may be invested in capital securities and other financial instruments equivalent in terms of risk, as well as invested in venture capital market and alternative investment funds.

It should be noted that at the moment of launching ABLV Active Investment Plan its administrative costs will be among the lowest ones on the market. The management fee of ABLV Active Investment Plan will be 0.72% p.a. Moreover, no performance fee (charged for capital increase) will be applied to the plan at least until the end of 2019.

Applications for participation in ABLV Active Investment Plan can be submitted via www.latvija.lv starting from 2 October this year. At the said portal, it will be also possible to obtain information about the second pension pillar investments — the account statement provided to the participants of the State Funded Pension Scheme.

More information about news of ABLV Bank services is available at the bank's website.

This announcement contains inside information.

         Ilmārs Jargans
         Head of Public Relations Department
         ABLV Bank, AS
         Tel.: +371 6777 5296
         e-mail: ilmars.jargans@ablv.com