LHV group issues 100 million euros of senior unsecured bonds
The AS LHV group carried out an issue of 100 million euros of senior unsecured and unsubordinated bonds. The bonds were issued with a maturity of four years, with an optional issuer redemption date after three years. The bonds were primarily issued in order to comply with MREL regulatory requirements.
Senior unsecured bonds have been offered to institutional investors. A total of 28 investors participated in the offer and the issue was 1.4 times oversubscribed. Of the total order book, 48% came from Nordic and Baltic investors, 16% from Spain, 14% from Germany, 14% from the UK and 9% from other European countries. The bonds were issued with a spread of 140 basis points against the mid-swap rate. The total return on the bond re-offer was 0.967%. The coupon rate for bonds payable to investors is 0.875%.
“Today’s bond issue is the first time that the AS LHV group has used international capital markets. The objective of the issue was mainly to comply with regulatory requirements, which prescribe that part of the group’s financing structure must be made up of other eligible liabilities. , in addition to deposits. We have decided to target a wider range of international investors with the offer. Given the growth in LHV’s business that we have seen, we need to approach international markets for funding, ”commented Kadri Haldre, LHV’s Head of Treasury.
The bonds are expected to be listed on Euronext Dublin. LHV Group’s issuer rating by Moody’s is Baa3 with a positive outlook. The bonds should be rated Baa3. Moody’s rating of LHV Pank’s deposits is Baa1 with a positive outlook.
LHV Group is the largest national financial group and capital provider in Estonia. The main subsidiaries of the LHV group are LHV Pank, LHV Varahaldus and LHV Kindlustus. LHV employs more than 620 people. LHV banking services are used by 290,000 clients, the pension funds managed by LHV have 174,000 active clients and LHV Kindlustus protects a total of 132,000 clients. LHV’s UK branch provides banking infrastructure to 160 international financial services companies, through which LHV’s payment services reach customers around the world.
LHV Communication Manager
Telephone: +372 502 0786
Email: [email protected]