Demand for BluOr Bank bonds exceeded the offering by 2.6 times, reaching 26.19 million euros

The public offering of the first tranche under BluOr Bank AS's EUR 30,000,000 Non-convertible Unsecured Subordinated Bond Programme closed on Friday, 27 September 2024.

The public offering of the first tranche was announced on September 9, 2024, in the amount of up to EUR 10,000,000 (with the possibility to increase in case of oversubscription in accordance with the procedure set forth in the Prospectus) within the framework of its non-convertible unsecured subordinated bond program of EUR 30,000,000.

As investor demand exceeded the initial offer by 2.6 times, reaching 26 190 000 EUR, BluOr Bank, in accordance with the terms of the Base Prospectus, exercised its right and decided to increase the issue volume to 20 million EUR to maximize investor satisfaction and avoid planning another series of issuances within the program in the coming months.

"We are pleased with the results of the subordinated bond issuance. The outcome demonstrates investors' confidence in BluOr Bank’s stability, determination, and its long-term operational strategy. The funds raised through the bond issue will not only enable us to maintain the current pace of business financing in the Baltic States but also significantly increase it, supporting the interests of entrepreneurs and aligning with the bank's growth strategy," said Dmitrijs Latiševs, BluOr Bank's CEO and Chairman of the Management Board. “At the same time, the high demand reflects the development of the investment market across all Baltic countries and the understanding of investment as a valuable financial instrument,” added Mr. Latiševs.

A total of 20,000 subordinated bonds will be issued, each with a nominal value of EUR 1,000 and a fixed interest rate of 10.0% per annum. The issue date of the first issue under the new bond programme is 2 October 2024, with a maturity date of 2 October 2034. The bonds are registered in Nasdaq CSD under ISIN code LV0000804060 and the bonds will be listed on the Baltic Bond List of Nasdaq Riga on 3 October 2024.

The subordinated bonds were offered to both institutional and retail investors across Latvia, Lithuania, and Estonia, as well as to qualified investors in accordance with the Base Prospectus approved by Latvijas Banka on 30 August 2024. In total, 1011 investors participated in the offering, comprising 71% from Estonia, 23% from Latvia, and 6% from Lithuania. Latvian investors account for 72% of investment demand. Of the total number of applications, 96% were up to EUR 100 000, which confirms the high interest and activity of the public offer market.

“The high level of interest, with the initial issuance volume being oversubscribed by 2.6 times, demonstrates the strong trust Baltic investors have in BluOr Bank’s financial stability and strategic direction. It is also encouraging to see the support from Estonian retail investors and the participation of Baltic institutional investors in the book," said Silver Kalmus, Debt Securities Area Manager at LHV.

The Management Board of BluOr Bank decided to allocate the subordinated bonds based on the following principles:

• all subscription orders from the same subscriber were combined;

• all subscription orders of up to EUR 10,000 (including) were accepted in full;

• priority bond allocation was given to current BluOr Bank clients, employees, and shareholders;

• other investors above EUR 10 000 will be awarded bonds of 23%-50% of the amount applied for;

• the number of bonds with decimal places was rounded to the nearest whole number.

AS LHV Pank acted as an advisor and the joint lead manager for the issuance.