Published: 2015-10-27 12:51:16 CET
LHV Group
Company Announcement

Subscription results of subordinated bonds of AS LHV Group

The public offering of the subordinated bonds of AS LHV Group was concluded yesterday. LHV exercised the right to increase the offering volume up to EUR 15.0 million as the initial volume of the offering, i.e. EUR 10.0 million, was over-subscribed.

In total 935 investors participated in the offering and subscribed for the subordinated bonds in the overall amount of EUR 25.697 million. The subscription period started on 5 October and ended at 5 p.m. on 26 October.

LHV Group allocated bonds to all investors who subscribed up to the amount of EUR 10,000 (incl.) in full. Subscribers who exceeded that amount were allocated 45.8% of the sum exceeding EUR 10,000. The amount of the distributed bonds was rounded to the nearest whole number.

Of the 935 subscribers 68% received bonds in the desired volume. 32% of the investors received less bonds than they subscribed for.

According to Mr. Erkki Raasuke, Managing Director of LHV Group, the offering was successful. “It was our intention to involve a wider range of investors and it succeeded. Our investor base multiplied. We are grateful and proud that such a large number of investors showed their support and trust for LHV”, commented Mr Raasuke.

LHV will use the subordinated capital raised from investors in the composition of own funds to support the growth of its business volumes.

LHV is issuing new 10-year subordinated bonds with the interest rate of 6.5% per annum. Face value of one bond is 1000 euros. The bonds will be issued on 29 October and listed on Nasdaq Tallinn stock exchange on 2 November 2015.

 

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are AS LHV Pank and AS LHV Varahaldus. LHV has a representative office in Tallinn, Tartu, Riga, and Vilnius. LHV employs over 250 people and more than 70,000 customers use LHV’s banking services. LHV's pension funds have over 130,000 customers.

 

         Priit Rum
         Communication Manager
         Telephone: +372 502 0786
         E-post: priit.rum@lhv.ee