Outcome of Subscription to AB Šiaulių Bankas Subordinated Bonds

On Friday, 17 May 2024, the subscription period for AB Šiaulių Bankas Tier 2 subordinated bonds ended. Almost 3,000 investors have submitted orders to subscribe to bonds worth EUR 97.2 million resulting in an oversubscription of 3.9 times the issue volume.

On 20 May 2024 the Bank approved the final distribution of the issue, according to which 25,000 bonds with a nominal value of EUR 1,000 each will be distributed to a total of 2,337 investors (retail and institutional) from Lithuania, Latvia and Estonia.

“Retail investors have been interested in Šiaulių Bankas’ debt securities recently, so the time for opportunity has come. For the first time we have offered the Bank’s Tier 2 subordinated bonds publicly to retail investors and received a lot of interest – the demand for the bonds exceeded the supply almost four times.

We appreciate that part of this issue was purchased by retail investors who, together with institutional investors, continue to demonstrate their long-term trust in Šiaulių Bankas. Giving priority in allocation of bonds to the Bank’s clients who subscribed bonds through our bank, we are looking forward to become the first choice for those who are choosing smart ways to invest,” said Tomas Varenbergas, Head of Investment Management Division of Šiaulių bankas.

During the allocation process, the Bank in accordance with offering prospectus followed these principles:

  • All subscription orders of the same investor were merged for the purpose of allocation;
  • Minimum threshold was set of EUR 10,000 to be allocated for each investor;
  • To all retail and corporate clients, who placed subscription orders through AB Šiaulių Bankas, EUR 16.7 million were allocated in total, which represent 66.8% from the total issue;
  • To investors (excl. institutional investors), who placed subscription orders through other financial intermediaries in amount above minimum threshold no bonds were allocated;
  • Institutional investors were allocated EUR 2.2 million in total or 8.7% of the total issue;
  • The number of bonds with decimal places was rounded to the previous whole number.

The 25,000 Tier 2 subordinated bond issue with a nominal value of EUR 1,000 each, annual interest rate of 7.70%, and redemption date of 22 May 2034 with the possibility to redeem the bonds prior to its maturity on the bank’s initiative in accordance with the terms of the bonds. The bonds will be transferred to the investors’ securities accounts on or about 22 May 2024 and will be listed on the Baltic Bonds List of Nasdaq Vilnius Stock Exchange on or about 28 May 2024. Under the new Tier 2 subordinated bond programme, approved on 23 April 2024, it is possible to increase the issue volume up to EUR 100 million.

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Additional information: 
Tomas Varenbergas 
Head of Investment Management Division