Issue of ABLV Bank 2-Year Bonds Completed
OREANDA-NEWS. August 07, 2012. Subscription to another bond issue performed by ABLV Bank, AS has been completed. The issue was performed under the Second Bond Offer Programme, and its size is USD 50 million, reported the press-centre of ABLV Bank.
The total amount of bonds issued within this issue, code ABLV FRN USD 300714 is 50 000, and face value of a single bond is equal to USD 1 000. The annual interest rate set is floating: LIBOR 6M + 1.20%, with coupon paid twice a year. The issue maturity date is 30 July 2014. The bonds were acquired by 58 bank’s customers, 20% of which are individuals, and 80% – legal entities.
This bond issue is a continuation of gradually substituting long-term deposits with investments in bonds, which allow customers to receive higher income than that under deposits. Bonds also 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.
We have already informed that under the Second Bond Offer Programme there also were subordinated bonds denominated in EUR and USD issued in June this year, and their maturity term is 10 years. The size of those issues equaled EUR 5 million and USD 20 million respectively.
The bank will submit an application to the stock exchange for listing the issued bonds in NASDAQ OMX Riga list of debt securities, to ensure public quotations of the bonds. Admission of the bonds to the regulated market will make these financial instruments available to investment funds, insurance companies and other professional investors.
“We are satisfied with the issue results. As far as we know, this is the largest public issue of corporate debt securities in the history of the NASDAQ OMX Riga Stock Exchange”, said ABLV Bank Chief Executive Officer Ernests Bernis.
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