Bigbank Opens Baltic Bond Offering at 6.5% Annual Interest

Estonian bank Bigbank has launched a public offering of subordinated bonds to retail and professional investors in Estonia, Latvia and Lithuania.

The bank aims to raise up to €15 million, with the option to increase the offering to €25 million. The issue is part of an €80 million subordinated bond programme.

The ten-year bonds have a nominal value and issue price of €1,000 and carry a fixed annual interest rate of 6.5%, with quarterly interest payments. They are due to mature on November 26, 2036.

Subscriptions opened on November 10 and will close on November 20 at 15:30 Baltic time. The results are expected around November 23, with settlement scheduled for approximately November 26.

Bigbank intends to apply for admission of the bonds to the Nasdaq Baltic Bond List in Tallinn, with trading expected to begin around November 27.

The issue provides the bank with a source of long-term financing across the three Baltic markets.

As unsecured subordinated debt, the bonds rank below unsubordinated creditor claims in the event of liquidation or bankruptcy. They are also subject to potential write-down or conversion under applicable bank resolution rules.

Source: Bigbank public offering announcement.