Public Offering of Subordinated Bonds of AS LHV Group

Ellex in Estonia Partner Gerli Kivisoo, Counsel Gerd Laub and Associate Georg Kuusik advised LHV on the public offering of subordinated bonds. 

The bonds offered by LHV with a 10.5% interest were extremely popular with investors and were oversubscribed 16.3 times by the end of the subscription period on 26 September. 

LHV raised 25 million euros with the bonds, exercising also its option to increase the volume to 35 million euros as the investors’ interest in the bonds was so high. 

In total, 16,255 investors subscribed to LHV bonds for the amount of 407.5 million euros. This exceeds the initial goal by more than 16 times. Consequently, LHV increased the volume of the issue to 35,000 bonds. 

LHV offered 35,000 subordinated bonds with a nominal value of 1,000 euros and a maturity date of 29 September 2033. The interest of the bond is 10.5%, and interest payments are made quarterly. In total, it is possible to raise up to 200 million euros based on the new bond programme.