Outcome of Subscription to AS LHV Group Subordinated Bonds
The public offer of subordinated bonds of AS LHV Group (LHV Group) closed on Tuesday, 26 September 2023. As the initial issue volume of EUR 25 million was oversubscribed, LHV Group exercised its right to increase the issue volume to the maximum permitted volume of EUR 35 million.
In the first issue of the new bond programme, 16 255 investors participated, subscribing subordinated bonds for a total amount of EUR 407.5 million. This means that the initial issue volume was oversubscribed 16.3 times. The subscription period commenced on 12 September at 10.00 and concluded on 26 September at 16.00.
In accordance with the LHV Group prospectus of the subordinated bonds registered by the Estonian Financial Supervision and Resolution Authority on 11 September 2023, the Management Board of LHV Group decided on the subscription outcome of the issue, the volume of the issue, and the allocation of the bonds to be offered according to the following principles:
- all subscription orders of the same subscriber were summed up;
- all subscription orders of LHV Pank's previous customers and LHV Group's previous investors up to the EUR 2,000 were fulfilled;
- LHV Pank's previous customers and LHV Group's previous investors, whose subscriptions exceeded the threshold, were allocated 3.106% of the amount exceeding the EUR 2,000 threshold;
- the number of bonds with decimal places was rounded to the previous whole number;
- no bonds were allocated to other investors.
"The subscription outcome shows that a good offer and investors who have faith and trust in what we do have met. The funds raised help us strengthen our capital structure, support the growth of our business and market position in both Estonia and the United Kingdom. LHV is planning capital and bond transactions in the future as well," Madis Toomsalu, CEO of LHV Group commented.
The first issue of LHV Group included 35,000 subordinated bonds with a nominal value of EUR 1,000, annual interest rate of 10.5%, and redemption date of 29 September 2033. The subordinated bonds will be transferred to the investors’ securities accounts on or about 29 September 2023 and will be listed on the Baltic Bonds List of Nasdaq Tallinn Stock Exchange on or about 2 October 2023. Under the new bond programme, it is possible to raise up to EUR 200 million in total.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 990 people. As at the end of August, LHV’s banking services are used by 403,000 clients, the pension funds managed by LHV have 127,000 active clients, and LHV Kindlustus protects a total of 160,000 clients. LHV Bank, a subsidiary of the Group, holds a banking licence in the UK and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.
Marthi Lepik
Communication Specialist
Phone: +372 5666 2944
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