On 29 January 2010, in an extraordinary meeting of Parex banka’s shareholders a decision was made to issue bank’s debt securities for the total value of EUR 175 million with a 2 year maturity and a 5% coupon. The planned issue date is 15 February 2010 and the bank will have an early repayment rights. The bonds will be issued in several tranches.

The issue of Parex banka’s debt securities will be aimed at facilitating economically favourable and legally stable deposit restructuring.  Parex banka’s major depositors who currently have limited possibilities to handle their funds will be offered to acquire securities by means of their funds deposited at the bank.  The restructuring of the largest bank’s deposits will have a favourable effect on decisions regarding the cancellation of the imposed restrictions, as well as on the bank’s ability to attract investors and repay the state’s investment. Lifting of the restrictions is one of the prerequisites to re-launch lending, which currently is an essential factor for the stimulation of general economic development.

Currently, the Latvian Privatisation Agency is the majority shareholder of Parex banka, holding 73.4% of the Bank’s shares, but 22.4% are owned by the European Bank for Reconstruction and Development.

About Parex banka:

Founded in 1992, Parex banka currently employs some 1 900 people at branches all over Latvia and offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka has signed up to the European Code of Conduct on housing loans.

For more information please contact:

Inga Saleniece

Corporate Communications Department

Telephone: +371 67778870 or +371 26564629

E-mail: pr@parex.lv