Citadele bank bonds will be listed on the stock exchange on Monday

The list of Baltic Debt securities will include 2,000 bank bonds with a nominal value of 10,000 euros, a fixed coupon interest rate of 8% and a maturity date of April 5, 2034.

It has already been reported that the demand for the bonds of the bank “Citadele” exceeded the supply three times, according to the bank’s statement to the stock exchange “Nasdaq Riga”.

“Citadele” has issued subordinated bonds in the amount of 20 million euros.

The bonds were offered to institutional and private investors in Latvia, Lithuania and Estonia, as well as to qualified investors located in one of the member states of the European Economic Area. In total, 582 investors participated in the offer, of which 549 are private and 33 – institutional investors. Of the total portfolio, 36% of offers were received from Latvian investors, 23% – from Lithuania, 40% – from Estonia, and 1% – from other countries.

As a result of significantly higher demand, priority was given to clients of the “Citadele” segment in the allocation of bonds, as well as, in some cases, previous cooperation with investors was also taken into account.

Proceeds from the issue are expected to be used for further strengthening of the regulatory capital structure, including the use of “Citadel’s” subordinated capital (Tier 2 instruments) in accordance with the requirements of the Capital Requirements Regulation (CRR) and other Tier 2 capital regulations.