AS Citadele banka has issued EUR 300 million of senior preferred unsecured bonds with a 4.25-year maturity and an issuer call option exercisable one year prior to maturity, on 23 December 2028. The notes are scheduled to mature on 23 December 2029.
The transaction attracted strong demand from institutional investors worldwide, including asset managers, investment funds, insurers, supranational institutions, and banks. Close to 200 investors participated, with total demand exceeding the targeted amount by 9 times, reaching EUR 2.7 billion ahead of final pricing.
The bonds carry a coupon of 3.875% (yield of 3.927%), equivalent to a 170 basis point spread over the mid-swap rate. Proceeds will be used to meet existing and future MREL requirements and for general corporate purposes, including the repurchase of the bank’s outstanding EUR 200 million Fixed/Floating Rate Notes due 2026 (ISIN: XS2393742122), as outlined in the tender offer memorandum dated 15 September 2025.
This transaction marks a significant milestone for Citadele. Over the past year, we’ve participated in several non-deal roadshows to re-engage the international investor community, and the outcome speaks volumes. The strong demand and competitive pricing reflect the trust investors place in Citadele and our solid positioning in the Baltic region. It is confirmed that the level of oversubscription represents one of the largest book builds by a Baltic bank in the Eurobond market - a remarkable achievement. We are deeply grateful to our international banking partners, clients, and investors for their continued confidence in Citadele” - Valters Ābele, CFO and Member of the Management Board.
In this deal, AS Citadele banka mandated Citigroup, Morgan Stanley and UniCredit as Joint Lead Managers and Citadele acted as a Co-Manager in the Baltics.
The bonds will be listed on the regulated market of Euronext Dublin. AS Citadele banka holds a long-term issuer rating of Baa1 (stable) from Moody’s, with the bond rated Baa2.
About Citadele
Citadele’s, rated Baa1 (stable) by Moody’s, mission is to modernise the financial industry and offer more opportunities to private individuals and businesses throughout the Baltics. In H1 2025, Citadele issued EUR 765 million in new loans, with its total loan portfolio reaching EUR 3.5 billion, while total deposits reached EUR 4.0 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. Citadele Bank is the Group’s parent company in Latvia, and its subsidiaries and branches operate in Latvia, Lithuania and Estonia.
Vlad Ender, Head of Treasury, +372 5517213, vlad.ender@citadele.ee