AS LHV Pank issues EUR 10 million of bonds to AS LHV Group
At its meeting on 19 December, the Supervisory Board of AS LHV Pank decided to issue subordinated bonds, allowing AS LHV Group to invest into its subsidiary the capital gathered with a public offer of bonds. The purpose of the investment is to strengthen the bank’s capital base in order to increase business volumes.
According to the decision, on 20 December 2018, AS LHV Pank will issue new subordinated bonds with an issue size of EUR 10,000,000. A total of 200 bonds with a nominal value of EUR 50,000 and issue price of EUR 50,000 per bond will be issued. The bonds are issued with a 10-year term (20.12.2018–20.12.2028) and with a possibility of early redemption by the issuer after five years (20.12.2023). The annual interest rate of the bonds is 6,5% and the issuer pays it in quarterly payments. The bonds are unsecured debt obligations.
This is an intra-group transaction. All bonds to be issued shall be subscribed to by the sole shareholder of AS LHV Pank, AS LHV Group, on 20 December 2018.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are LHV Pank and LHV Varahaldus. There are 380 people working at LHV and more than 159,000 clients are using its banking services. Pension funds managed by LHV have 178,000 active clients.
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