Bigbank's public offering of subordinated bonds oversubscribed by nearly 3 times
The public issue of Bigbank's 10-year unsecured subordinated bonds with 6.5 percent interest rate, which ended on Friday, 18 October 2024, was oversubscribed by nearly 3 times by investors. The bank used the right to increase the base volume of the issue to a total of 5 million euros instead of the originally planned 3 million.
789 investors participated in the offering, subscribing subordinated bonds in the total amount of 8.7 million euros. 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, and the interest rate on the bonds offered may have been slightly too high, considering the rapid developments in the interest rate environment over the past month. 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.
When distributing subordinated bonds, the Bigbank management board decided to sum up all subscription orders from the same subscriber and accept subscriptions by investors up to the amount of 30,000 euros in full. The employees of companies belonging to the Bigbank Group were allocated 100% of the amount subscribed, and the remaining investors were allocated 2.75% of the amount subscribed exceeding 30,000 euros. The number of bonds with decimal places was rounded to the nearest whole number.
The bonds are expected to be transferred to investors' securities accounts on or about 23 October 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 24 October 2024.
The public offering of unsecured subordinated bonds of Bigbank AS lasted from 8 to 18 October 2024. It was the third series of Bigbank's unsecured subordinated bond programme. Within the entire programme, Bigbank can raise up to 30 million euros.
Important information
This notice is an advertisement for securities within the meaning of the Regulation No 2017/1129/EU of 14 June 2017 of the European Parliament and of the Council and does not constitute an offer to sell Bigbank’s unsecured subordinated bonds or an invitation to subscribe to subordinated bonds. Each investor should make any decision to invest only based on the information contained in the prospectus (including Supplements 1 and 2), the summary of the prospectus of the third offering and bond terms and conditions as well as the final terms of the third offering. The approval of the prospectus by the Financial Supervision Authority is not considered to be a recommendation for Bigbank’s unsecured subordinated bonds.
The information contained in this notice is not intended to be published, distributed, or transmitted, in whole or in part, directly or indirectly, in countries or under any circumstance where publication, sharing or transmission would be unlawful or to persons who are subjects of financial sanctions imposed on them by competent authorities. Bigbank’s unsecured subordinated bonds will be publicly offered only in Estonia, Latvia, and Lithuania. The sale or offer of the subordinated bonds shall not take place in any jurisdiction where such offer, invitation or sale would be unlawful without the exception or qualification of law or to persons who are subjects of financial sanctions imposed on them by competent authorities. Unsecured subordinated bonds are publicly offered only on the basis of the prospectus (including Supplements 1 and 2) and the summary of its third offering and bond terms and conditions and final terms. The offering is targeted only at persons to whom this prospectus is addressed. This notice has not been approved by any supervisory authority and it does not constitute a prospectus.