|Emitents||ABLV Bank, AS (549300IHIJ7SCANBWN17)|
Subscription to ABLV Bank, AS bond issues in USD and EUR has been completed, the issue size being USD 50 million and EUR 15 million. The issues were performed under the bank’s Second Bond Offer Programme. The bonds were purchased by 57 customers of the bank.
Under the USD issue, code: ABLV FXD USD 061114, there were 50 000 bonds issued. The face value of a bond is USD 1 000. The annual interest rate is fixed: 1.45% with coupon payment twice a year. The issue maturity date is 6 November 2014.
Under the EUR issue, code: ABLV FXD EUR 051114, there were 15 000 bonds issued. The face value of a bond is EUR 1 000. The annual interest rate is fixed: 1.55% with coupon payment twice a year. The issue maturity date is 5 November 2014.
The bank will submit an application to the stock exchange for including the bonds of these issues in NASDAQ OMX Riga list of debt securities in order to begin public quotation of the bonds. Admission of the bonds to the regulated market will make these financial instruments available to investment funds, insurance companies and other professional investors.
“We are satisfied with results of the issues. The raised funds can be used for enhancing development of our long-term crediting programmes,” ABLV Bank Chief Executive Officer (CEO) Ernests Bernis said.
These bond issues are a continuation of gradually substituting long-term deposits with investments in bonds that we initiated at the end of the last year. Investments in bonds allow customers to receive higher income than that under deposits. Bonds also ensure wider transaction opportunities for customers — those can be purchased, sold or used as collateral to obtain financing, meanwhile retaining the investment amount and planned yield.
“We see constant development in the secondary bond market – the interest and actual demand are growing, thus increasing liquidity of the bonds,” Ernests Bernis concluded.
Under the First Bond Offer Programme, there were 3 issues performed in 2011, and their face value amounted to EUR 25 million and USD 30 million. Whereas under the Second Bond Offer Programme there are already 6 issues performed, their face value being EUR 20 million and USD 145 million.
ABLV Bank is the largest independent private bank in Latvia. The bank’s majority shareholders — Oļegs Fiļs, Ernests Bernis and Nika Berne – directly and indirectly hold 86% of the bank's share capital. ABLV Group includes ABLV Bank, AS; ABLV Bank Luxembourg, S.A.; ABLV Capital Markets, IBAS; ABLV Asset Management, IPAS; Pillar Holding Company, KS; ABLV Consulting Services, AS; ABLV Corporate Services, SIA; New Hanza City, SIA, and other companies. ABLV Group has representative offices in Moscow, St. Petersburg, Yekaterinburg, Kiev, Odessa, Minsk, Almaty, Dushanbe, Baku, and Tashkent.