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Citadele raises €40m of Tier 2 capital at 6.25% coupon with maturity of 10 years

07.12.2016.

On 6 December, Citadele banka completed a highly successful €40 million 10 year Tier 2 subordinated debt issuance that was oversubscribed. Issued within the framework of the First Unsecured Subordinated Bonds programme, the bond carries a coupon of 6.25% and will be used to further strengthen the Group’s overall capital position, to facilitate the execution of the Bank’s growth strategy across the Baltics and to repay the subordinated debt owed to the Latvian Privatisation Agency.

“This issuance was oversubscribed, demonstrating strong investor interest in Citadele and our ambition to become the leading local bank across the Baltics. The bonds were acquired by investors across all three Baltic States, and we are delighted at the confidence shown by these qualified investors. We would also like to thank “ABLV Bank” and the law office "Eversheds Bitāns" for preparing this high-quality issuance”, said Head of Treasury Kaspars Jansons.

“ABLV Bank” acted as underwriter and adviser to the Bank. Law Office “Eversheds Bitāns” acted as the Bank’s legal adviser. The Bonds are planned to be listed on the regulated market – the Baltic Bond List of Nasdaq Riga Stock Exchange.