On 26 March 2010, indicative prices in the Bloomberg system show that the price of Parex banka’s eurobods on the secondary market reached a level of 92.72% of their face value. The Bloomberg data indicates that since 15 January, 2009, when the secondary market price of the bonds was at its lowest point of 34.95% of the face value, the price of the Bank’s Eurobonds has returned to pre-crisis level.

Kaspars Jansons, Vice President, Head of Treasury at Parex banka commented: “The market welcomes the changes in the stability of Parex banka and the recovery of the Latvian economy, being reflected in the price of the Bank’s bonds on the secondary markets reaching the pre-crises levels. Moreover, the current price level indicates that there are no visible risks as to the splitting up of Parex banka and the decision made by the Latvian Cabinet of Ministers has not negatively impacted the price of the Bank’s bonds.”

On 15 February 2010, Parex banka completed the first tranche of notes issue of EUR 17,680,000, and concluded relevant two-year deposit agreements worth EUR 130 million. This kind of deposit agreements with customers will improve the liquidity of the bank. The second tranche of bonds is to be organized in two months, upon the formation of the secondary bond market. To facilitate the trade of securities in the secondary market the Bank has signed a contract with investment bank Morgan Stanley about the distribution of the securities in the international market. Morgan Stanley will not be paid for this service.

About Parex banka:
Founded in 1992, Parex banka currently employs around 1 900 people in Latvia. The Bank 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.

Additional information:

Inga Saleniece
Corporate Communications Manager
Parex banka
Ph. +371 67778870 or +371 26564629
E-mail: pr@parex.lv