Results of AS “Citadele banka” Subordinated Bonds Offer

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AS "Citadele Banka" has completed a three-times oversubscribed issuance of EUR 20 million first series bonds under its EUR 60 million Fifth Unsecured Subordinated Bonds Programme.

“The strong demand resulting in a three-times oversubscribed issuance is a remarkable response that reflects the investors’ confidence in Citadele’s financial strength and strategic direction, and we appreciate trust from our investors, partners and clients”, says Valters Ābele, Citadele Chief Financial Officer, Member of Management Board.

In total 2000 subordinated bonds having EUR 10 000 nominal value each were issued with a ten-year maturity and a fixed interest rate of 8% per annum. The purpose of the issuance is to further strengthen Citadele’s regulatory capital structure, including use as Citadele’s subordinated capital (Tier 2 instruments) in accordance with the requirements of the Capital Requirements Regulation (CRR) and any other applicable rules for Tier 2 capital. The bonds will be listed on the Baltic Bond List of Nasdaq Riga on or around 8 April 2024.

The unsecured subordinated bonds were offered to institutional and retail investors in Latvia, Lithuania and Estonia, as well as to qualified investors located elsewhere in the EEA. In total, 582 investors participated in the offering, of which 549 were retail investors and 33 were institutional investors. Out of the total order book, 36% was received from investors in Latvia, 23% from Lithuania, 40% from Estonia and 1% from other countries. Due to considerable oversubscription, priority in bond allocation was given to Citadele’s retail customers, and in certain cases, also previous cooperation with investors was taken into consideration.

Attorney-at-law Edijs Poga Law Office acted as Citadele’s legal adviser. LHV acted as an adviser and joint lead manager together with Citadele in this offering.

About Citadele

Citadele’s, rated Baa2 (positive) by Moody’s, mission is to modernise the financial industry and offer more opportunities to private individuals and businesses throughout the Baltics. In the 12 months ended 31 December 2023, Citadele issued EUR 897 million in new loans, with its total loan portfolio reaching EUR 2.9 billion, while total deposits reached EUR 3.8 billion. Alongside a modern universal banking platform, Citadele offers its clients a range of services based on next-generation financial technology, including its modern app, contactless payments and instant payments. Citadele was the first in the Baltics to introduce account opening with a selfie, payment rings and payments to mobile numbers. Meanwhile, businesses make active use of our remote account opening, Citadele Phone POS card acceptance app and Klix universal e-commerce tool, as well as applying for financing to develop their business. Citadele Bank is the Group’s parent company in Latvia, and its subsidiaries and branches operate in Latvia, Lithuania and Estonia.

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