On 8 November, 2017 the Financial and Capital Market Commission of Latvia approved the Base Prospectus of EUR 25 000 000 Second Unsecured Subordinated Bonds Programme of AS “Citadele banka” dated 2 November, 2017. Today the management board of the bank approved the initial Final Terms of the First tranche of the First series of subordinated bonds.
Within the framework of its EUR 25 000 000 Second Unsecured Subordinated Bonds programme, bank Citadele commences the offering period for subordinated bonds of the first tranche of the first series. The offering period will last from 10 November 2017, 14:00 to 17 November, 2017, 16:00 (Latvian time).
The planned offering size of the bonds of the first tranche of the first series is up to EUR 20 million. The date of the issuance is expected on 24 November, 2017. The bonds will be offered to investors in Latvia and Lithuania and the qualified investors from other states of the European Economic Area will also be able to acquire the bonds.
The purpose of this issuance is to refinance the current outstanding subordinated debt to the European Bank for Reconstruction and Development and further improvement of Citadele’s capital adequacy ratio. Citadele has taken this strategic decision to strengthen the Bank’s capital position and to support the Bank’s ongoing growth strategy -providing active lending to small and medium sized enterprises.
The planned issue price is 100% of the nominal value. Each bond’s nominal value constitutes EUR 10 000. The minimum investment amount during the initial offering is at least 10 subordinated bonds. Interest payments on the bonds will be made twice a year on the dates specified in the Final Terms. The bonds will mature in 10 years, however Citadele has right to redeem the bonds prematurely.
The Base Prospectus of the bonds issuance registered with the Financial Capital and Market Commission determines the general terms and conditions of the EUR 25 000 000 Second Unsecured Subordinated Bonds Programme; whereas, the exact size of the issuance of each tranche of each series, the price of bonds, maturity date, yield and other parameters are included in the Final Terms of the respective issuance. The bonds are planned to be included in the regulated market – the Baltic Bond List of “Nasdaq Riga” stock exchange. Law Office “Eversheds Sutherland Bitāns” acts as the bank’s legal adviser.
Citadele Group is managed from Latvia. 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 vision is to become the financial services provider of choice in the Baltics for private customers and small and medium businesses.
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 investors represented by the investment company “Ripplewood Advisors LLC,” while the remaining shares belong to the European Bank for Reconstruction and Development (EBRD).