Redgate Capital advised Bigbank’s subordinated bond issue. According to Sander Klaos, head of capital raising at Redgate Capital, the oversubscription of the offer is a good confirmation that investor activity continues to be high despite the volatile economic situation. “While we see some caution in our day-to-day interactions with investors, this bond program was of particular interest to local retail investors.”
- Registration period: 6.-16. September 2022
- Coupon Rate: 8%
- The subscription volume is 10,000 bonds with a nominal value of 1,000 euros/piece (10 MEUR). Option to increase up to 20,000 bonds (20 MEUR)
- Actual order: 22.8 million euros.
- Each investor received guaranteed bonds for 10,000 euros. In the rest, orders were satisfied on average to the extent of 81.1%.
Press Release 19 September 2022
The base volume of the public offering of the unsecured subordinated bonds of Bigbank that ended on 16 September 2022 was oversubscribed by more than twice and its total volume will be 20 million euros. Trading with the bonds on the Nasdaq Tallinn Stock Exchange is expected to commence on Thursday, 22 September 2022.
A total of 1,610 investors participated in the offering, subscribing subordinated bonds in the total amount of approximately 22.8 million euros. Bigbank used the option to increase the volume of the offering by up to 10,000 bonds as a result of which the total volume of the offering increased from 10 million euros to 20 million euros.
Martin Länts, Chairman of the Bigbank Management Board, thanked all investors who participated in the public offering for their confidence in the Bigbank’s strategy and growth prospects. “I am happy that in addition to offering loans and deposits to Estonian people and companies, we were now also able to contribute to the development of the local capital market and creation of an additional investment opportunity for investors,” he noted. “20 million euros of additional capital will help to realize our growth plans both in the field of home loans as well providing financing to companies. We wish to give strong competition in these sectors to large universal banks in the Baltics and through that profitably grow our business volumes and market share,” added Martin Länts.
The Management Board of Bigbank decided to allocate the subordinated bonds between investors in accordance with the following principles:
- All subscription orders of all investors up to 10,000 euros were satisfied in full;
- The employees, members of the management boards and supervisory boards of the companies belonging to the Bigbank group were allocated 100% of their subscribed volume;
- Investors were allocated 81.1% of their subscribed amount that exceeded 10,000 euros.
The offering was part of the first series of the unsecured subordinated bond programme newly created by Bigbank. It was conducted on the basis of the prospectus approved by the Estonian Financial Supervisory Authority on 5 September 2022. During the public offering Bigbank offered up to 10,000 unsecured subordinated bonds with the name of EUR 8.00 Bigbank subordinated bond 22-2032, with the nominal value of EUR 1,000 each, the maturity date 21 September 2032 and fixed interest rate of 8% per annum, payable quarterly (the first interest payment will be made on 21 March 2023). The public offering was carried out in Estonia, Latvia and Lithuania. Bigbank’s legal advisor was Ellex Raidla and its financial adviser was Redgate Capital.
Bonds will be transferred to the investors’ securities accounts on or about 21 September 2022 and their first day of trading in the Baltic Bond List of Nasdaq Tallinn Stock Exchange is on or about 22 September 2022.
Bigbank is an Estonian commercial bank with a global reach specialised in loans and in 2021 its balance sheet volume exceeded one billion euros.
Additional information:
Argo Kiltsmann
Member of the Management Board
Tel: +372 53 930 833
e-mail: Argo.Kiltsmann@bigbank.ee
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 and does not constitute an offer to sell the Bigbank unsecured subordinated bonds or an invitation to subscribe to 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 the United States, Canada, Hong Kong, Japan, Singapore, South Africa, or in any other country or under any circumstance where publication, sharing or transmission would be unlawful. Bigbank’s unsecured subordinated bonds will be publicly offered only in Estonia, Latvia and Lithuania and the sale or offer of the subordinated bonds shall not take place in any jurisdiction where such offer, invitation or sale would be unlawful without the exception or qualification of law.