AS “Citadele banka” issues EUR 40 million of unsecured subordinated bonds

Avaldatud

AS "Citadele Banka" has completed an oversubscribed issuance of 40 million euros bonds under the EUR 40 million Fourth Unsecured Subordinated Bonds Programme.

"The public offering was oversubscribed, and we appreciate trust from our investors, partners and clients. Citadele continues to raise funds in the financial markets and contribute to the development of the Baltic capital markets - at the end of November Citadele successfully placed EUR 200 million bonds in international capital markets, rated Baa3 by Moody’s, and just has completed an oversubscribed issuance of 40 million euros subordinated bonds in the local Baltic market. These deals are a testimony of our improved business quality which facilitates placement capabilities both in and outside the Baltic market," said Valters Ābele, Citadele CFO.

The bonds were issued with ten years maturity, with issuer’s optional redemption date after 5 years and with fixed interest rate of 5% per annum. The purpose of this issuance is further improvement of Citadele’s capital adequacy ratio as well as to refinance the current outstanding subordinated bonds issued in 2016. Citadele aims 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 unsecured subordinated bonds were offered to institutional and retail investors in Latvia, Lithuania and Estonia, as well as institutional investors located in the Member State of the EEA. In total 136 investors participated in the offering, of which 124 retail and 12 institutional investors. Out of total order book 52% was received from investors in Latvia, 20% from Lithuania, 19% from Estonia and 9% from other EU countries.

The bonds will be listed on Baltic Bond List of Nasdaq Riga.

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