Banks, Financial Services, Latvia

Under the Sixth Bond Offer Program, ABLV Bank will issue 75,000 coupon bonds with face value of USD 1,000 each. The annual interest rate is fixed at 1.85% with coupon payment twice a year. The issue date is October 31, 2016, and the maturity date is October 31, 2018.

The bank will also issue 20,000 coupon bonds with a face value of EUR 1,000 each. The annual interest rate is fixed at 0.70% with coupon payment twice a year. The maturity date is October 31, 2018.

Also, the bank will issue 200,000 discount bonds with the purpose of raising subordinated capital with a face value of EUR 100 each. Initial placement price is 83.047% of the face value. The issue date is October 31, 2016, and the maturity date is October 31, 2026. The bank may redeem these bonds before maturity starting from October 31, 2021.

The subscription to bond issues will begin on September 29, 2016, and will last until October 24, 2016.

The bonds are planned to be admitted to the regulated market – the Baltic bond list of Nasdaq Riga.

As reported, The Latvian Finance and Capital Market Commission in April decided to register the base prospects of the issue of ABLV Bank bonds which provides for issue of debt securities worth EUR 400 mln or the equivalent amount in US dollars.

ABLV is the second largest bank in Latvia by assets. The bank's major shareholders - Olegs Fils, Ernests Bernis and Nika Berne - directly and indirectly hold 86.55% of the bank's voting share capital.