AS “Citadele banka” successfully completed EUR 35 million Senior Preferred Bonds issuance Riga, 2024-10-14 15:40 CEST --
AS "Citadele Banka" has completed an oversubscribed issuance of EUR 35 million of Senior Unsecured Preferred Bonds (“Bonds”) under the €100,000,000 First Senior Unsecured Preferred Fixed/Floating Rate Bonds Programme (the “Programme”).
With the total demand for bonds exceeding EUR 46 million, the minimum offered amount of EUR 10 million was oversubscribed, enabling Citadele to increase the issue volume to the predetermined maximum size of EUR 35 million.
“The robust financial performance of Citadele allowed us to set the planned bond offering size flexibly, achieving a competitively priced deal execution at a fixed coupon of 5.00%, representing a 225bps premium over the market rates. We are particularly proud of our decision to implement a multi-day bond subscription period. This approach allowed a broader group of Baltic institutional and professional investors to participate, confirming our commitment to the development of the Baltic capital markets. This strategy ensures that both the capital raised, and the interest payable remain within the Baltic economies, further contributing to economic growth", says Rūta Ežerskienė, Chair of the Management Board, Chief Executive Officer.
Bonds were issued with 2 years maturity and a fixed interest rate of 5% per annum, resetting on 14 October 2025 to the floating interest rate of EURIBOR 3 months plus 2.3% per annum.
The net proceeds from the Offer are to be used by Citadele for general corporate purposes, including compliance with the Minimum Requirement for Own Funds and Eligible Liabilities (“MREL”) applicable to Citadele at the consolidated group level. The Bonds were offered to qualified investors in Latvia, Estonia, as well as elsewhere in the EEA. The bonds will be listed on the Baltic Bond List of Nasdaq Riga on or around 15 October 2024.
In total, more than 30 qualified investors participated in the offering. Out of the total order book, 57% was received from investors in Latvia, 8% from Estonia and 35% from Lithuania. Due to considerable oversubscription, the following principles were followed during the allocation process:
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All orders of EUR 100,000 received full allocations,
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Previous cooperation with investors was considered,
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The timing of order submission or order indication was considered.
Attorney-at-law Edijs Poga Law Office acted as Citadele’s legal adviser.
About Citadele
Citadele’s, rated Baa2 (positive) by Moody’s, mission is to modernise the financial industry and offer more opportunities to private individuals and businesses throughout the Baltics. In the six months ended 30 June 2024, Citadele issued EUR 621 million in new loans, with its total loan portfolio reaching EUR 3.0 billion, while total deposits reached EUR 3.7 billion. Alongside a modern universal banking platform, Citadele offers its clients a range of services based on next-generation financial technology, including its modern app, contactless payments and instant payments. Citadele was the first in the Baltics to introduce account opening with a selfie, payment rings and payments to mobile numbers. Citadele Bank is the Group’s parent company in Latvia, and its subsidiaries and branches operate in Latvia, Lithuania and Estonia.
Vlad Dmitrijev
Head of Treasury
+372 5517213
vlad.dmitrijev@citadele.ee
Ilona Frīdmane
Head of Investor Relations and ESG
+37129483327
Investor.relations@citadele.lv
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