LHV Group issued subordinated bonds

Ellex team in Estonia advised LHV Group in relation to the public offering of subordinated bonds.

The public offering of AS LHV Group subordinated bonds ended on Friday, 25 September. As the initial issue volume of EUR 25 million was oversubscribed, LHV Group used its right to increase the issue volume to the maximum permitted volume of EUR 35 million.
Altogether 3,069 investors participated in the issue, subscribing to subordinated bonds for a total of EUR 85.3 million. This means that the initial issue volume was oversubscribed 3.4 times. The subscription period started at 10.00 on 16 September and ended at 16.00 on 25 September.
“Investors showed great interest and trust towards LHV and our ambitions. LHV’s largest bond issue to date, was subscribed to by the most investors to date and they also wished to invest the highest sum to date. The funds raised help us strengthen our capital structure and support the growth of our business and market position. The loan portfolio of LHV is growing swiftly, also we are finalizing the acquiring of Danske’s Estonian corporate and local governments’ credit portfolio. As with previous issues, we wanted to see all subscribers as our investors, however regarding the allocation of bonds we preferred the existing securities’ owners first and secondly customers of LHV,” Madis Toomsalu, CEO of LHV Group commented.

As a result of the issue LHV Group issued subordinated bonds with a nominal value of 1,000 euros, an interest rate of 6.0% per annum and a maturity date of 30 September 2030. The bonds will be listed on Nasdaq Tallinn Stock Exchange.

The team was led by Partner Gerli Kivisoo and included Senior Associates Kadi Sink, Alla Kuznetsova and Anneli Krunks.

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank and LHV Varahaldus.

Linked Experts

Person Item Background
Gerli Kivisoo
Partner / Estonia
Person Item Background
anneli krunks
Anneli Krunks
Senior Associate / Estonia
Person Item Background
alla kuznetsova
Alla Kuznetsova
Senior Associate / Estonia
Person Item Background
kadi sink
Kadi Sink
Senior Associate / Estonia