OREANDA-NEWS. June 13, 2012. On 7 June 2012, the Council of the Financial and Capital Market Commission approved registration of the Base Prospectus of ABLV Bank, AS second bond offer programme, stating that under the Base Prospectus ABLV Bank, AS may perform public offering of debt securities to the amount of LVL 150 000 000, or equivalent amount in EUR or USD.

The bank continues implementing the strategy started at the end of the last year: issuing of bonds aimed at successfully substituting long-term deposits. Investments in bonds allow customers to receive higher income than that under deposits. Debt securities ensure wider transaction opportunities for customers – those can be purchased, sold or used as collateral to obtain financing, meanwhile retaining the investment amount and planned yield. Second bond offer programme continues the successfully started campaign. The demand for bonds issued by ABLV Bank exceeded the offer.

New bond series, just like previous ones, will be listed on the regulated market – NASDAQ OMX Riga stock exchange list of debt securities.

In the nearest time, there will be several bond issues performed under the Base Prospectus of the second bond offer programme: two bond issues, equal to USD 20 million and EUR 5 million, will be performed for the sake of raising subordinated capital, and their maturity term will be 10 years. Whereas in July, the investors will be given an opportunity to apply for bonds worth USD 50 million, maturing in 2 years.

The major parameters of three bond issue series performed under the Base Prospectus of ABLV Bank, AS second bond offer programme are listed below.

Bond issue of EUR 5 000 000 for the sake of raising subordinated capital

The issue size is EUR 5 000 000. The number of bonds is 50 000. The face value of one bond is EUR 100. The issue date is 25 June 2012, and the maturity date is 25 June 2022.

Annual interest rate of subordinated bonds:

from 25 June 2012 till 25 June 2017 – discount rate of 4.5% calculated twice a year (without coupon payment);

from 26 June 2017 till 25 June 2022 – coupon rate of 6.0% calculated twice a year.

Bond issue of USD 20 000 000 for the sake of raising subordinated capital

The issue size is USD 20 000 000. The number of bonds is 200 000. The face value of one bond is USD 100. The issue date is 27 June 2012, and the maturity date is 27 June 2022.

Annual interest rate of subordinated bonds:

from 27 June 2012 till 27 June 2017 – fixed rate of 4.5% with coupon payment twice a year;

from 28 June 2017 till 27 June 2022 – fixed rate of 6.0% with coupon payment twice a year.

Bond issue of USD 50 000 000

The issue size is USD 50 000 000. The number of bonds is 50 000. The face value of one bond is USD 1 000. The annual interest rate is floating: LIBOR 6M + 1.20% with coupon payment twice a year. The issue date is 30 July 2012, and the maturity date is 30 July 2014.