OREANDA-NEWS. On 04 March 2009 was announced, that AS “Akciju komercbanka „Baltikums”” redeems gradually and on its own initiative its public bonds from the financial market. Therefore, the investors in the Bank’s bonds are able to sell the bonds of AS “Akciju komercbanka „Baltikums”” held by them at the current market price before their maturity.

The Bank’s interest in redemption of its own bonds is caused by the following factors. First, AS “Akciju komercbanka „Baltikums”” has considerable free funds. Second, rates are reducing on the current capital financial market, and it is not beneficial for the bank to pay high interest on coupons for issued bonds. Apart from that, the bonds of issue 2 mature in April of this year. Therefore, AS “Akciju komercbanka „Baltikums”” redeems the bonds prematurely and thus minimizes its interest expenses. The Bank believes too that by ensuring market liquidity of its bonds it contributes to maintaining good business relations with investors both currently and in the future.  The Bank’s opinion is that it is very important especially these days, when there is instability and nervousness in the market.

At present, AS “Akciju komercbanka „Baltikums”” bonds of two issues to the total amount of EUR 15 million are publicly circulated and listed on the stock exchange NASDAQ OMX Riga. The Bank has redeemed the first issue of its bonds earlier.

As at 24.02.2009, the total amount of redeemed bonds of issue 2 was more than EUR 3 million (61% of the issue), and bonds of issue 3 – EUR 650 thousand (6.5% of the issue).

Investors showed considerable interest in bonds issued by AS “Akciju komercbanka „Baltikums””. Almost all investors came from the Baltics, ѕ of the issue volume was acquired by institutional investors (pension and investment funds, banks and insurance companies), and ј - by private investors. AS “Akciju komercbanka „Baltikums”” assigned receipts from the bonds issue to development of trade finance and financing of companies engaged in shipping business.

In the future, the Bank may consider making more bonds issues in accordance with the situation in the financial markets and customer demand for financing of promising projects.

The non-audited profit of AS “Akciju komercbanka „Baltikums”” for 2008 amounts to LVL 3.66 million (LVL 5.21 million), against LVL 2 million (EUR 2.87 million) earned by the Bank a year before. At the close of the year, its assets volume reached LVL 110.79 million (EUR 179.89 million), i.e. by 13.4% more than in late 2007. As at the end of 2008, the Bank’s loan portfolio exceeded LVL 34.37 million (EUR 47.98 million), being a rise of 39.8% against late 2007.  The amount of attracted deposits was LVL 78.61 million (EUR 132.44 million) with a rise of 8.7% against 2007.