Bigbank AS Subordinated Unsecured Bond Offering Results

The public offer of Bigbank AS (Big bank) unsecured subordinated bonds (the Offer) ended on Friday, May 24, 2024. This was the second series of Bigbank’s unsecured subordinated bond program, which was carried out based on the base prospectus of the subordinated bond program. Under this program, Bigbank can raise up to 30 million euros in total.

As part of the Offering, Bigbank offered up to 3,000 unsecured subordinated bonds, with a nominal value of EUR 1,000 each, a maturity date of May 29, 2034 and a rate of fixed interest of 7% per year, payable quarterly. In the event of oversubscription, Bigbank had the right to increase the offering volume up to 7,000 bonds for a total of up to 10,000 bonds. The Offer was carried out in Estonia, Latvia and Lithuania.

929 investors participated in the subscription and submitted orders to subscribe for subordinated bonds for a total amount of 9.0 million euros. The basic issue volume of 3 million euros was thus oversubscribed three times. Bigbank exercised its right to increase the volume of the Offer, the total final volume of the Offer thus amounting to 7 million euros.

The Bigbank Management Board decided to allocate the bonds according to the following principles:

1. All subscription orders from the same subscriber have been summarized;

2. Investor subscriptions of up to 30,000 euros were fully accepted;

3. Employees of companies belonging to the Bigbank group were allocated 100% of the amount subscribed;

4. Investors were allocated 33% of the amount subscribed above 30,000 euros;

5. The number of links with decimal places has been rounded to the nearest whole number.

Martin Länts, Chairman of the Board of Management of Bigbank, thanked all investors who participated in the public offering for their confidence in the bank’s strategy and growth prospects. “The subscription results show that investor confidence in Bigbank’s future plans remains very high. With the capital raised, Bigbank will be even stronger in implementing its business strategy, planning to continue its growth mainly in the housing and business lending segments while ensuring compliance with established capital. requirements”, commented Martin Länts.

The story continues

The bonds are expected to be transferred to investors’ securities accounts around May 29, 2024 and the first day of trading of the bonds on the Baltic Bond List of the Nasdaq Tallinn Stock Exchange is expected to take place around May 30, 2024.

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