The public offering of Bigbank AS (Bigbank) unsecured subordinated bonds (the Offering) ended on Friday, 24 November 2023. It was the first 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 30 November 2033 and fixed interest rate of 8% 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.
1847 investors participated in the subscription and submitted subscription orders for the subordinated bonds in the total amount of 21.6 million euros. Therefore, the base issue volume of 3 million euros was oversubscribed by seven times. Bigbank exercised its right to increase the volume of the Offering, as such the total final volume of the Offering amounted to 5,000,000 euros.
The Management Board of Bigbank decided to allocate the bonds according to the following principles:
- All subscription orders from the same subscriber were summed up;
- Subscriptions up to the amount of 3,000 euros were accepted in full;
- Employees of companies belonging to Bigbank group were allocated 100% of the amount subscribed;
- Investors were allocated 2.46% of the amount subscribed exceeding 3,000 euros;
- The number of bonds with decimal places was rounded to the closest whole number.
Martin Länts, Chairman of the Board of Bigbank, thanked all investors who participated in the public issue for their trust in the bank’s strategy and growth prospects. “The results of the first series show that investor confidence in Bigbank’s future plans remains high. With the support of the capital raised, Bigbank will be stronger and even more able to implement its business strategy, planning to grow mostly its housing and corporate loan portfolios, while ensuring compliance with the established capital requirements,” commented Martin Länts
The Bonds are expected to be transferred to the securities accounts of investors on or about 30 November 2023 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 1 December 2023.