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Ellex Advises Bigbank on EUR 20 Million Subordinated Bond Issuance

Ellex Advises Bigbank on EUR 20 Million Subordinated Bond Issuance

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Ellex has advised Bigbank on its EUR 20 million issuance of subordinated bonds.

Bigbank is an Estonian commercial bank specializing in loans.

According to Ellex, “the base volume of the public offering of the unsecured subordinated bonds of Bigbank that ended on September 16, 2022, was oversubscribed by more than twice, and its total volume will be EUR 20 million. Trading with the bonds on the Nasdaq Tallinn Stock Exchange commenced on September 22, 2022. A total of 1,610 investors participated in the offering, subscribing subordinated bonds in the total amount of approximately EUR 22.8 million. 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 EUR 10 million to EUR 20 million.”

According to the firm, “the offering was part of the first series of the unsecured subordinated bond program newly created by Bigbank. During the public offering, Bigbank offered up to 10,000 unsecured subordinated bonds ... with the nominal value of EUR 1,000 each, the maturity date September 21, 2032, and a fixed interest rate of 8% per annum, payable quarterly (the first interest payment will be made on March 21, 2023). The public offering was carried out in Estonia, Latvia, and Lithuania.”

“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,” Bigbank Chairman of the Management Board Martin Lants commented. “EUR 20 million of additional capital will help 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.”

Ellex’s team included Partner Gerli Kivisoo, Senior Associate Kadi Sink, and Associate Kevin Gerretz.

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