Results of the Offering of Unsecured Subordinated Bonds of Bigbank AS
The public offering of Bigbank AS (hereinafter Bigbank) unsecured subordinated bonds (hereinafter the Offering) ended on Friday, 16 September. It was the first series under Bigbank’s newly established unsecured subordinated bond programme, which was conducted based on the base prospectus of subordinated bonds program registered by the Estonian Financial Supervision Authority on 5 September 2022.
In the course of the Offering, up to 10,000 unsecured subordinated bonds with the name of EUR 8.00 Bigbank subordinated bond 22-2032, with the nominal value EUR 1,000 each, the maturity date 21 September 2032 and fixed interest rate of 8% per annum, payable quarterly (first interest payment will be made on 21 March 2023), were offered by Bigbank. In case of oversubscription, Bigbank had the right to increase the volume of the Offering by up to 10,000 bonds. Bigbank also had the right to reduce the volume of the Offering by the unsubscribed amount. The Offering was carried out only in Estonia, Latvia and Lithuania and not in any other jurisdiction.
1610 investors participated in the subscription and submitted subscription orders for the subordinated bonds in the total amount of 22.8 million euros. Therefore, the base issue volume of 10 million euros was oversubscribed by more than 2 times. Bigbank exercised its right to increase the volume of the Offering by up to 10,000 bonds, which increased the total amount of the Offering to 20 million euros.
The Management Board of Bigbank decided to allocate the bonds according to the following principles:
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All subscription orders from the same subscriber were summed up;
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Subscriptions up to the amount of 10,000 euros were accepted in full;
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Employees, members of the management boards and the supervisory boards of companies belonging to Bigbank group were allocated 100% of the amount subscribed;
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Investors were allocated 81,1% of the amount subscribed exceeding 10,000 euros;
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The number of bonds with decimal places was rounded to the closest whole number.
Martin Länts, Chairman of the Bigbank Management Board, thanked all investors who participated in the public offering for their confidence in the Bigbank’s strategy and growth prospects. “I am happy that in addition to offering loans and deposits to Estonian people and companies, we were now also able to contribute to the development of the local capital market and creation of an additional investment opportunity for investors,” he noted. “20 million euros of additional capital will help to realize our growth plans in the field of home loans as well providing financing to companies. We wish to give strong competition in these sectors to large universal banks in the Baltics and through that profitably grow our business volumes and market share,” added Martin Länts.
The Bonds are expected to be transferred to the securities accounts of investors on or about 21 September 2022 and the first trading day of the bonds on the Baltic Bonds List of Nasdaq Tallinn Stock Exchange is expected to be on or about 22 September 2022.
Argo Kiltsmann
Member of the Management Board
Tel: +372 53 930 833
E-mail: Argo.Kiltsmann@bigbank.ee
www.bigbank.ee
Important information
This notice is an advertisement for securities within the meaning of the Regulation No 2017/1129/EU of 14 June 2017 of the European Parliament and of the Council European Parliament and does not constitute an offer to sell or invitation to subscribe to subordinated bonds of Bigbank.
The information contained in this notice is not intended to be published, distributed or transmitted, in whole or in part, directly or indirectly, in the United States, Canada, Hong Kong, Japan, Singapore, South Africa, or in any other country or under any circumstance where publication, sharing or transmission would be unlawful. Subordinated bonds of Bigbank will be publicly offered only in Estonia, Latvia and Lithuania and the sale or offer of the bonds shall not take place in any jurisdiction where such offer, invitation or sale would be unlawful without the exception or qualification of law.
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