Banks, Estonia, Financial Services, Investments

The volume of the ten-year subordinated bonds issue is up to EUR 10 million. Oversubscription can increase the issuance volume to 15 million euros.

The new subordinated bonds have a nominal value of 1,000 euros. Subordinated debt interest rate is 6.5% per annum and interest payments will be made quarterly. The bonds are issued for a 10-year period, i.e. until 2025, but LHV is entitled to redeem the bonds after five years if the FSA gives consent.

The bonds will be traded on the Tallinn Stock Exchange.

Subordinated bonds do not finance banking activities, but they go in the bank's balance sheet into equity. Subordinated bonds are riskier than ordinary bonds.

In addition, the Tallinn Stock Exchange today began trading LHV's last year's subordinated bonds with the total nominal value of 15.9 million euros.