Results of the Offering of Unsecured Subordinated Bonds of Bigbank AS

The public offering of Bigbank AS (Bigbank) unsecured subordinated bonds (the Offering) ended on Friday, 24 May 2024. It was the second series under Bigbank’s unsecured subordinated bond programme, which was conducted based on the base prospectus of subordinated bonds programme. Under the programme it is possible for Bigbank to raise up to 30 million euros in total.

In the course of the Offering, up to 3,000 unsecured subordinated bonds, with the nominal value EUR 1,000 each, the maturity date 29 May 2034 and fixed interest rate of 7% per annum, payable quarterly, were offered by Bigbank. In case of oversubscription, Bigbank had the right to increase the volume of the Offering by up to 7,000 bonds to the total of up to 10,000 bonds. The Offering was carried out in Estonia, Latvia and Lithuania.

929 investors participated in the subscription and submitted subscription orders for the subordinated bonds in the total amount of 9.0 million euros. Therefore, the base issue volume of 3 million euros was oversubscribed by three times. Bigbank exercised its right to increase the volume of the Offering, as such the total final volume of the Offering amounted to 7 million euros.

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

  1. All subscription orders from the same subscriber were summed up;
  2. Subscriptions by investors up to the amount of 30,000 euros were accepted in full;
  3. Employees of companies belonging to Bigbank group were allocated 100% of the amount subscribed;
  4. Investors were allocated 33% of the amount subscribed exceeding 30,000 euros;
  5. The number of bonds with decimal places was rounded to the closest whole number.

Martin Länts, Chairman of the Management Board of Bigbank, thanked all investors who participated in the public issue for their trust 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 growing primarily in the housing and corporate loan segments while ensuring compliance with established capital requirements,” commented Martin Länts.

The Bonds are expected to be transferred to the securities accounts of investors on or about 29 May 2024 and the first trading day of the bonds on the Baltic Bonds List of Nasdaq Tallinn Stock Exchange is expected to be on or about 30 May 2024.

Argo Kiltsmann
Member of the Management Board
Tel: +372 53 930 833