Ellex Raidla has advised Coop Pank on a public offering of unsecured subordinated bonds.
Based on Estonian's capital, Coop Pank is one in five universal banks operating in Estonia. Coop Pank’s banking services are used by more than 90,900 clients. The strategic owner of the bank is the domestic retail chain Coop Eesti, with a sales network of 330 stores.
According to Ellex, the subscription period for the bonds starts on March 16, 2021 and will end on March 26, 2021. According to the firm, "the offering will be targeted to all retail and institutional investors in Estonia. Coop Pank offers publicly up to 8000 unsecured subordinated bonds of Coop Pank EUR 5.5 Coop Pank bond 21-2031 with the nominal value of EUR 1000 each.”
"The purpose of the bond program is to finance Coop Pank's future growth strategy,” said Margus Rink, chairman of the management board at Coop Pank. “Over the last four years, Coop Pank has grown its operating volumes by about 40% a year, and our footprint in the Estonian economy is becoming more and more noticeable. We have so far covered the capital needs arising from growth through earned profits, subordinated bonds issued in 2017 and 2019, and an additional share issue and initial public offering in 2019. The money raised in this bond issue is also planned to be used to support the growth of Coop Pank.“
Ellex’s team included Partner Gerli Kivisoo, Senior Associates Kadi Sink and Alla Kuznetsova, and Associate Kevin Gerretz.
