Newsroom|Bigbank's public offering of subordinated bonds oversubscribed three times

Bigbank's public offering of subordinated bonds oversubscribed three times

The public issue of Bigbank's unsecured subordinated bonds, which ended on Friday, 24 May, was oversubscribed by investors three times. The bank used the right to increase the base volume of the issue to a total of 7 million euros instead of the originally planned 3 million.

929 investors participated in the offering, subscribing subordinated bonds in the total amount of 9,006,000 euros. Martin Länts, Chairman of the Management Board of Bigbank, thanked all investors who participated in the public issue for their trust in the bank's strategy and growth prospects. "The subscription results show that investor confidence in Bigbank's future plans continues to be very high and that the interest rate of bonds in the offering was near the optimal level. With the capital raised from the bond issue, Bigbank can continue to implement its business strategy, focusing its growth primarily in the housing and corporate loan segments while ensuring compliance with the established capital requirements," commented Martin Länts.

When distributing subordinated bonds, the Bigbank management board decided to sum up all subscription orders from the same subscriber and accept subscriptions by investors up to the amount of 30,000 euros in full. The employees of companies belonging to the Bigbank Group were allocated 100% of the amount subscribed, and the remaining investors were allocated 33% of the amount subscribed exceeding 30,000 euros. The number of bonds with decimal places was rounded to the closest whole number.

The bonds are expected to be transferred to investors' securities accounts on or about 29 May 2024, and the first trading day of the bonds on the Baltic Bonds List of Nasdaq Tallinn Stock Exchange is expected to be on or about 30 May 2024.

The public offering of unsecured subordinated bonds of Bigbank AS lasted from 14 to 24 May 2024. It was the second series of Bigbank's program of unsecured subordinated bonds. Within the entire program, Bigbank can raise up to 30 million euros.

In the framework of the second series, Bigbank offered up to 3,000 unsecured subordinated bonds with a nominal value of 1,000 euros, with a maturity date of May 29, 2034 and a fixed interest rate of 7% per annum payable quarterly. In case of oversubscription, Bigbank had the right to increase the volume of the offering by 7,000 bonds to a total of 10,000 bonds. Bigbank exercised the corresponding right and the total volume of the offering of this series thus increased to a total of 7 million euros. The offer took place in Estonia, Latvia, and Lithuania.

Bigbank, which celebrated its 30th anniversary last year, 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 was 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.

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 European Parliament and does not constitute an offer to sell subordinated bonds or an invitation to subscribe to subordinated bonds. Each investor should make any decision to invest in the bonds only on the basis of the information contained in the Prospectus (incl. Supplement), its second series summary, the terms and conditions of the bonds and the final terms of the bonds for the second series. The approval of the Prospectus by the Financial Supervision Authority is not considered to be a recommendation for Bigbank’s 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 any country or under any circumstance where publication, sharing or transmission would be unlawful or to any persons to whom the competent authorities have applied financial sanctions. Bigbank’s unsecured subordinated bonds will be publicly offered only in Estonia, Latvia and Lithuania and the sale or offer of the 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 any persons to whom the competent authorities have applied financial sanctions. The unsecured subordinated bonds are offered solely based on the Prospectus (incl. Supplement), its second series summary, bond terms and conditions and final terms for second series and the Offering is intended only for the persons to whom the Prospectus is directed at. The present notice is not reviewed or confirmed by any supervisory authority, and it does not constitute a prospectus.