Notice of public offering of bonds of the Republic of Estonia
The Republic of Estonia is offering bonds for the first time specifically to the people of Estonia, providing retail investors with a fixed interest rate and the opportunity to trade on the Tallinn Stock Exchange. The offering is based on a presentation aimed at retail investors (https://www.riigivõlakiri.ee). Since the Republic of Estonia is the issuer of the bonds, there is no obligation for the issuer to prepare a prospectus in accordance with the Prospectus Regulation, and therefore no public offering prospectus will be prepared or disclosed. The issuer will apply for the bonds issued during the offering to be listed for trading on the Nasdaq Tallinn Stock Exchange in the government bonds list.
Up to 2,000,000 bonds, with a total volume of EUR 200 million, will be offered under the bond programme of the Republic of Estonia. The domestic bond programme allows the state to issue bonds with various maturities in a flexible and efficient manner to both domestic and international investors. The programme is perpetual and is not subject to a fixed volume limit; the total volume of the programme is limited by legal regulations governing the state budget.
The offering is organized exclusively in Estonia and is directed towards both retail and professional investors.
Summary of the key terms of the offering:
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The Republic of Estonia offers unsecured unsubordinated bonds with a nominal value of EUR 100 per bond, with a maturity date of 16 September 2026.
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The Republic of Estonia will pay interest on the bonds once a year at a fixed annual interest rate of 3.3%.
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The subscription period for the bonds begins on 28 August 2024, at 10:00 and ends on 9 September 2024, at 16:00 (Estonian time). Investors wishing to submit a subscription order must contact the operators of their securities account opened in the Estonian Register of Securities.
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The bonds are offered at a price of EUR 100 per bond. The bonds will be registered in the Estonian Register of Securities maintained by the Nasdaq CSD SE Estonia branch (Nasdaq CSD) with ISIN code EE1300001563.
Further details of the offering are described in the investor presentation.
IMPORTANT DATES
The schedule below highlights the key dates related to the offering:
28 August 2024 at 10:00 – start of the subscription period
9 September 2024 at 16:00 – end of the subscription period
11 September 2024 or a date close to it – issuer announces the results of the offering
16 September 2024 or a date close to it – value date of the bonds
17 September 2024 or a date close to it – first trading day of the bonds on Nasdaq Tallinn Stock Exchange
Subscription order form
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1 |
Owner of the securities account |
[Name of the investor submitting the subscription order] |
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2 |
Securities account: |
[Securities account number of the investor submitting the subscription order] |
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3 |
Account operator: |
[Name of the investor's account operator] |
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4 |
Security: |
Bond of the Republic of Estonia |
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5 |
ISIN kood: |
EE1300001563 |
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6 |
Amount of securities: |
[Amount of securities the investor wishes to subscribe] |
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7 |
Price (per security): |
EUR 100 |
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8 |
Transaction amount: |
[Total transaction value] |
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9 |
Counterparty: |
Ministry of Finance/Rahandusministeerium |
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10 |
Counterparty's securities account: |
99112935948 |
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11 |
Counterparty's account operator: |
AS LHV Pank |
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12 |
Trade date: |
Date of submitting the subscription order |
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13 |
Settlement date: |
16 September 2024 |
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14 |
Transaction type: |
"purchase" or "subscription" |
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15 |
Settlement type: |
"delivery versus payment (DVP)" |
For additional information, please contact:
State Treasury
Email: treasury@fin.ee
Important information
This notice does not constitute an offer or an invitation to sell or acquire securities, nor does it involve the sale of securities in any jurisdiction where such an offer or invitation would be unlawful prior to registration or qualification under applicable securities laws, or without a legal exemption. The information contained in this notice is not intended for publication, distribution, or transmission, in whole or in part, directly or indirectly, in jurisdictions or circumstances where such publication, distribution, or transmission would be unlawful, or to individuals or entities subject to financial sanctions imposed by competent authorities.
The bonds are offered solely on the basis of the investor presentation, and the offering is only directed to those individuals to whom the investor presentation is addressed. The investor presentation includes, among other things, risk factors, financial information, and other relevant details. This notice has not been approved by any regulatory authority and does not constitute a prospectus. Therefore, investors should base their decision to subscribe to the bonds on the information provided in the investor presentation and not solely on the information in this notice.
Attachments:
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Investor Presentation
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Terms of the Bond Programme
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Final Terms of the Bonds
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