Citadele successfully raises €20m of Tier 2 capital at a 5.5% coupon with maturity of 10 years

Published on

On 17 November, 2017 Citadele banka completed a €20 million, 10 year Tier 2 subordinated debt issuance.

Issued within the framework of Citadele’s Second Unsecured Subordinated Bonds Programme, the first series of bonds carry a coupon of 5.5%, which will be reflected in the Group’s net interest margin from the settlement date of 24 November. The issue will be used to further strengthen the Citadele Group’s overall capital position, to facilitate the execution of the Bank’s Baltic growth strategy and to refinance the current outstanding subordinated debt to the European Bank for Reconstruction and Development.

The Subordinated Bonds are planned to be listed on the regulated market (the Baltic Bond List of the Nasdaq Riga Stock Exchange).

Law Office “Eversheds Sutherland Bitāns” acted as the bank’s legal adviser.

Citadele Group is managed from Latvia, and its subsidiaries and branches operate in Latvia, Lithuania, Estonia and Switzerland. Citadele provides transactions and card payments, loans, deposits, investments, asset management and leasing services, as well as a range of exclusive and unique products. Citadele’s shareholders are an international and multinational group of investors with experience in the banking sector worldwide. 75% plus one share belongs to a group of international investors represented by the investment company “Ripplewood Advisors LLC,” while the remaining shares belong to the European Bank for Reconstruction and Development (EBRD).

Recent announcements

Show all announcements