Newsroom|Bigbank issues new unsecured subordinated bonds with 7 percent interest rate and intends to list them on Nasdaq Tallinn Stock Exchange

Bigbank issues new unsecured subordinated bonds with 7 percent interest rate and intends to list them on Nasdaq Tallinn Stock Exchange

Bigbank, a provider of digital banking services on European markets, announced today a new public offering of bonds in Estonia, Latvia, and Lithuania with the total volume of 3 to 10 million euros. Investors can subscribe to Bigbank’s ten-year unsecured subordinated bonds with the annual interest rate of 7 percent, payable quarterly. The subscription period starts today and ends on 24 May. Bigbank intends to list the bonds on the Baltic Bond List of the Nasdaq Tallinn Stock Exchange to secure liquidity and free trading.

"Bigbank continues rapid growth in both home and business loans and gradually starts offering everyday banking services as well. The current bond offering is the second in our 30-million-euro bond program the goal of which is to strengthen and optimise the capital structure of the group. We plan to use the revenue derived from the bond issue to cover the additional credit risk arising from the growth of the group corporate and home loan portfolio in Estonia, Latvia, and Lithuania, as well as to meet regulatory capital requirements," explained Martin Länts, Chairman of the Bigbank Management Board.

"In fixing the interest rate of the bond, we took into account that in the current context where the markets expect a slight decrease in the interest rate. Bigbank has a highly diversified loan portfolio, made up of private home and consumer loans and corporate leasing products as well as corporate development and investment loans. We are a well-managed, and modern bank operating effectively via digital channels. We have always paid our depositors interest that is among the highest in the market, made competitive offers for loan products and targeted at investors in recent years already three successful and oversubscribed bond issues with a total volume of 40 million euros,“ Länts said.

Bigbank, with more than 30-year history, is a commercial bank owned by Estonian capital. As of 31 March 2024, the bank’s balance sheet total was 2.5 billion euros and shareholders’ equity were 243.5 million euros. The bank operates in 9 countries, has 151,000 active customers and more than 500 employees. The Moody’s Credit Rating Agency has given the Bigbank bank deposits in foreign and local currencies a rating of Baa3 on the long-term rating scale and Prime-3 on the short-term rating scale.

Main terms of the public offering of bonds

During the public offering that started today, Bigbank offers up to 3,000 unsecured subordinated bonds with the name of EUR 7.00 Bigbank subordinated bond 24-2034, with the nominal value of EUR 1,000 each, the maturity date at 29 May 2034 and fixed interest rate of 7 percent per annum, payable quarterly. In case of oversubscription, Bigbank has the right to increase the volume of the offering up to 10,000 bonds. Bigbank has also the right to cancel the offering in the volume not subscribed. The unsecured subordinated bonds are offered with the price of EUR 1,000 per one bond.

The subscription period for the bonds starts today, 14 May 2024 at 10:00 and will end on 24 May 2024 at 15:30. The offering will be targeted to retail and professional investors in Estonia, Latvia, and Lithuania.

Subordinated bond represents an unsecured debt obligation of Bigbank before the investor. The subordination of the bonds means that upon the liquidation or bankruptcy of Bigbank, all the claims arising from the subordinated bonds shall fall due and shall be satisfied only after the full satisfaction of all unsubordinated recognised claims in accordance with the applicable law. Detailed information is available in the prospectus and in the summary of the prospectus.

The general goal of this offering is to strengthen the capital structure of the group and secure stable access to additional capital to finance the group’s budget and growth as foreseen in the Bigbank strategic plan.

The bank intends to use the revenue derived from the bond issue to cover the additional credit risk arising from the growth of the group corporate and home loan portfolio in Estonia, Latvia, and Lithuania, as well as to meet the regulatory capital requirements.

The revenue derived within the framework of the bond issue may also be used for the premature redemption of the existing unsecured subordinated bonds issued by Bigbank, on the condition that Bigbank is entitled to redeem such bonds prematurely in accordance with the applicable bond terms.

The Prospectus (incl. Supplement) together with the bond terms and conditions and second series final terms and the summary of the Prospectus for second series have been published and can be obtained in electronic format from Bigbank’s website https://investor.bigbank.eu and the website of the FSA https://www.fi.ee. In addition to the above, the translations of the second series summary of the Prospectus into Estonian, Latvian and Lithuanian can be obtained in electronic format from Bigbank’s website https://investor.bigbank.eu.

Before investing into Bigbank’s unsecured subordinated bonds we ask you to acquaint yourself with the summary of the prospectus of the second offering (including its supplement), the bond terms and conditions and the final terms of the second offering in full and if necessary, consult with an expert.

Additional information:

Argo Kiltsmann
Member of the Management Board
Tel: +372 53 930 833
E-mail: [email protected]
www.bigbank.ee

Important information

This notice is an advertisement for securities within the meaning of the Regulation No 2017/1129/EU of 14 June 2017 of the European Parliament and of the Council and does not constitute an offer to sell the Bigbank unsecured subordinated bonds or an invitation to subscribe to subordinated bonds. Each investor should make any decision to invest only based on the information contained in the prospectus (including its supplement), the summary of the prospectus of the second offering and bond terms and conditions as well as the final terms of the second offering. The approval of the prospectus by the Financial Supervision Authority is not considered to be a recommendation for Bigbank’s unsecured subordinated bonds.

The information contained in this notice is not intended to be published, distributed, or transmitted, in whole or in part, directly or indirectly, in countries or under any circumstance where publication, sharing or transmission would be unlawful or to persons who are subjects of financial sanctions imposed on them by competent authorities. Bigbank’s unsecured subordinated bonds will be publicly offered only in Estonia, Latvia and Lithuania and the sale or offer of the subordinated bonds shall not take place in any jurisdiction where such offer, invitation or sale would be unlawful without the exception or qualification of law or to persons who are subjects of financial sanctions imposed on them by competent authorities. Unsecured subordinated bonds are offered in public only on the basis of the prospectus (including its supplement) and the summary of its second offering and bond terms and conditions and final terms of the second offering and the offering is targeted only on persons to whom this prospectus is targeted. This notice has not been approved by any supervisory authority and it does not constitute a prospectus.