Ellex Raidla has advised Inbank on the issuance of AT1 bonds through private placement in the amount of EUR 3.15 million.
"AT1 or Additional Tier 1 is an innovative hybrid instrument in Estonian banking," Ellex reports, "having characteristics of both subordinated debt and equity, but belonging to Tier 1 capital in terms of capital adequacy calculation. For the investor, risk level and the yield of AT1 bond is higher than in an ordinary subordinated bond."
Priit Poldoja, the Chairman of the Inbank Supervisory Board, explained that the AT1 bond "is a complex instrument, issued in Estonia for the first time. With the issue, we wanted to test investors’ interest for bonds with perpetual term and higher risk. We are happy that investors’ interest in our bond was higher than expected and we raised more capital than we initially anticipated.”
Launched as a bank in 2015, Inbank provides services through its Internet bank and partner network. Inbank operates in the Estonian, Latvian, Lithuanian, and Polish markets. In addition, Inbank raises international deposits from the German and Austrian markets.
The Ellex team consisted of Partner Raino Paron and Senior Associate Helen Ratso.