OREANDA-NEWS. February 01, 2010. In an extraordinary meeting of Parex banka’s shareholders a decision was made to issue bank’s debt securities for the total value of EUR 175 million with a 2 year maturity and a 5% coupon. The planned issue date is 15 February 2010 and the bank will have an early repayment rights. The bonds will be issued in several tranches, reported the press-centre of Parex Banka.

The issue of Parex banka’s debt securities will be aimed at facilitating economically favourable and legally stable deposit restructuring. Parex banka’s major depositors who currently have limited possibilities to handle their funds will be offered to acquire securities by means of their funds deposited at the bank. The restructuring of the largest bank’s deposits will have a favourable effect on decisions regarding the cancellation of the imposed restrictions, as well as on the bank’s ability to attract investors and repay the state’s investment. Lifting of the restrictions is one of the prerequisites to re-launch lending, which currently is an essential factor for the stimulation of general economic development.

Currently, the Latvian Privatisation Agency is the majority shareholder of Parex banka, holding 73.4% of the Bank’s shares, but 22.4% are owned by the European Bank for Reconstruction and Development.