Bigbank issued subordinated bonds worth of 20 million

Ellex Partner Gerli Kivisoo, Senior Associate Kadi Sink and Associate Kevin Gerretz advised Bigbank on the public offering of subordinated bonds.

The base volume of the public offering of the unsecured subordinated bonds of Bigbank that ended on 16 September 2022 was oversubscribed by more than twice and its total volume will be 20 million euros. Trading with the bonds on the Nasdaq Tallinn Stock Exchange commenced today,  on 22 September 2022.

A total of 1,610 investors participated in the offering, subscribing subordinated bonds in the total amount of approximately 22.8 million euros. Bigbank used the option to increase the volume of the offering by up to 10,000 bonds as a result of which the total volume of the offering increased from 10 million euros to 20 million euros.

Martin Länts, Chairman of the Bigbank Management Board, thanked all investors who participated in the public offering for their confidence in the Bigbank’s strategy and growth prospects. “I am happy that in addition to offering loans and deposits to Estonian people and companies, we were now also able to contribute to the development of the local capital market and creation of an additional investment opportunity for investors,” he noted. “20 million euros of additional capital will help to realise our growth plans both in the field of home loans as well providing financing to companies. We wish to give strong competition in these sectors to large universal banks in the Baltics and through that profitably grow our business volumes and market share,” added Martin Länts.

The offering was part of the first series of the unsecured subordinated bond programme newly created by Bigbank. It was conducted on the basis of the prospectus approved by the Estonian Financial Supervisory Authority on 5 September 2022. During the public offering Bigbank offered up to 10,000 unsecured subordinated bonds with the name of EUR 8.00 Bigbank subordinated bond 22-2032, with the nominal value of EUR 1,000 each, the maturity date 21 September 2032 and fixed interest rate of 8% per annum, payable quarterly (the first interest payment will be made on 21 March 2023). The public offering was carried out in Estonia, Latvia and Lithuania.

Ellex in Estonia advised Bigbank on all legal matters related to the transaction and was supported by Ellex teams in Latvia and Lithuania. Bigbank’s financial adviser was Redgate Capital.

Bigbank is an Estonian commercial bank with a global reach specialised in loans and in 2021 its balance sheet volume exceeded one billion euros.