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Wednesday, 08.05.2024, 19:05
ABLV Bank Arranged Bond Issue for Baltic RE Group
The value of the issue amounted to 4 mln euros. Initial placement price: 100% of the face value. The issue date is 12 December 2016, and the maturity date is 12 December 2020. The bonds are to be admitted to the regulated market, the Baltic Bond List of Nasdaq Riga, in the short term.
Upon bond
subscription, the number of bonds applied for exceeded the available number of
bonds by more than 25%, which clearly demonstrates investors’ high interest.
Eventually, 42 investors purchased the bonds during the initial offering. The
issuer will use the acquired funds for purchase of commercial real estate in
central Riga, reconstruction and repair works in the properties, etc.
“We are
extremely pleased how well the issue was received by the investors, whose
requests quickly exceeded the available bonds,” says Giovanni Dalla
Zonca, Chairman of Board of Baltic RE Group. “We consider
such result as a tangible demonstration of appreciation for the long-term
investment strategies of the company and for the achievements in setting up a
portfolio of truly core properties in the Baltics”.
“We’re
satisfied that during the initial offering we acquired more than 40 investors
in quite a short time; the total number of their applications significantly
increased the available number of bonds. This demonstrates our clients are
interested in financial instruments and investments of such kind. The issue
results also confirm our ability to pass the experience we gained in issuing
our bonds to the clients, thus helping them to raise necessary funds for the
development of their business,” says Māris Kannenieks, Member of
Board of ABLV Bank.
The
arrangement of the bond issue is a natural development of collaboration between ABLV
Bank and Baltic RE Group. In 2015, one of the largest
transactions in the Latvian commercial real estate market took place, where ABLV
Bank provided 28-million-euro financing for the holding portfolio
consisting of trophy historic buildings located in the prime high street
location in Old Riga.
The product range of ABLV Bank was
diversified by the arrangement of bond issues for clients as the result of
large experience the bank gained in issuing its own debt securities. So far, we
have performed 39 public bond issues for the total value exceeding 1 billion
euros.
Baltic RE Group, AS business lines are purchase
and sale of real estate, its lease and management. The holding is the largest
lessor of all-purpose high quality commercial areas with state-of-the-art
facilities in Old Riga. Baltic RE Group, AS is investing in
the Baltics with a long-term view, highly specific vision and a non-speculative
approach for the creation of sustainable value.
ABLV Bank, AS is the largest independent private bank
in Latvia. The bank’s major shareholders — Oļegs Fiļs,
Ernests Bernis and Nika Berne — directly
and indirectly hold 86.55% of the bank's voting share capital. ABLV
Group includes ABLV Bank, AS; ABLV Bank Luxembourg, S.A.; ABLV
Capital Markets, IBAS; ABLV Asset Management, IPAS; Pillar Holding Company, KS;
ABLV Consulting Services, AS; ABLV Corporate Services, SIA; New Hanza City,
SIA, and other companies. ABLV Group has
representative offices in Moscow, St. Petersburg, Vladivostok, Kiev, Odessa,
Minsk, Almaty, Baku, Tashkent, Hong Kong, Limassol, and New York.