Bigbank's public offering of subordinated bonds oversubscribed seven times
The public issue of Bigbank's unsecured subordinated bonds, which ended on Friday, November 24, was oversubscribed by investors more than seven times. 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. Trading with the new Bigbank bonds on the Nasdaq Tallinn Stock Exchange is expected to commence on Friday, 1 December.
1,847 investors participated in the offering, subscribing subordinated bonds in the total amount of 21.6 million euros. Martin Länts, Chairman of the Bigbank Management Board, thanked all participating investors for their trust in the bank's strategy and growth prospects. "The listing results show that investors' confidence in Bigbank's future plans continues to be very high. We are really pleased with the great interest of retail investors, and that is why we preferred them for the allocation. With the support of the revenue derived from the bond issue, Bigbank can continue to implement its business strategy, while simultaneously ensuring compliance with the established capital requirements. According to our strategy, we plan to continue growth especially in the product lines of home and business loans," commented Martin Länts.
When distributing subordinated bonds, the Bigbank management board decided to satisfy all investors' subscriptions of up to EUR 3,000 in full. The employees of companies belonging to the Bigbank Group were allocated 100% of their subscribed bonds, and the remaining investors were allocated 2.46% of their stated volume, which was greater than 3,000 euros. The number of bonds with decimal places weas rounded to the nearest whole number.
The bonds will be transferred to investors' securities accounts on or around November 30, 2023, and their first trading day on the Baltic bond list of the Nasdaq Tallinn Stock Exchange will be on or around December 1, 2023.
The public offering of unsecured subordinated bonds of Bigbank AS lasted from 14 to 24 November 2023. It was the first series of Bigbank's new program of unsecured subordinated bonds. Within the entire program, Bigbank can raise up to 30 million euros.
In the framework of this offering, Bigbank offered up to 3,000 unsecured subordinated bonds with a nominal value of EUR 1,000, with a maturity date of 30 November 2033 and a fixed interest rate of 8% per annum payable quarterly. In case of oversubscription, Bigbank had the right to increase the volume of the offering by 7,000 bonds to a total of 10,000 bonds. Bigbank exercised the corresponding right and the total volume of the offering of this series thus increased to a total of 5 million euros. The offer took place in Estonia, Latvia, and Lithuania.
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 the Bigbank unsecured subordinated bonds or an invitation to subscribe to 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 the United States, Canada, Hong Kong, Japan, Singapore, South Africa, or in any other country or under any circumstance where publication, sharing or transmission would be unlawful. Bigbank’s unsecured subordinated bonds will be publicly offered only in Estonia, Latvia and Lithuania and 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.