LHV Group offers subordinated bonds
- You will be part of the growth of the domestic financial group both locally and internationally
- You will help to create Estonian capital
- You will earn a solid and considerable rate of return in an environment of falling interest
Bond subscription begins on 29 October at 10:00 and ends on 12 November at 16:00. Bonds will be issued on 15 November 2024 and listed on 18 November 2024.
LHV Group will publicly offer up to 20,000 subordinated bonds.
The subordinated bond offering is intended for retail and institutional investors operating in Estonia, Latvia, and Lithuania and made possible for the clients of account-managing financial institutions that are members of the Estonian securities settlement system. To subscribe for bonds in LHV Pank, please enter the internet bank or open an account.
To subscribe in other banks, please enter your internet bank or ask a consultant for help.
Subscribing to LHV subordinated bonds began on 29 October at 10:00.
LHV subordinated bond prospectus
It is a prospectus drawn up on the basis of a bond programme amounting to 200 million euros, under which up to a total of 200,000 bonds with a nominal value of 1,000 euros each can be issued. Under the same programme, 35 million euros worth of 10.5% fixed-rate subordinated bonds with a maturity date of 29 September 2033 (ISIN EE3300003573) have already been issued. The maturity of the bonds issued as part of the new issue is 10 years, with a possible early redemption by the issuer after 5 years, and subject to the consent of the European Central Bank. The plan is to list the bonds on the Nasdaq Tallinn Stock Exchange.
LHV subordinated bond issue
Issue size
This subordinated bond issue of LHV Group will have a volume of up to 20 million euros.
Subordination of bonds and significant risks
The subordination of LHV Group subordinated bonds means that in the event of the liquidation or bankruptcy of LHV Group, any claims resulting from those bonds will only be settled after all unsubordinated claims (for instance, deposits received, loans taken or obligations towards staff and suppliers) have been settled in full. In the order that claims are settled, only LHV Group shareholders rank behind holders of subordinated bonds. Among other things, in case of subordinated bonds, the bail-in risk must be taken into account, which may materialise if the crisis resolution measures are applied to LHV in the event of insolvency and other difficulties.
Nominal value EUR 1,000
The nominal value of an LHV Group subordinated bond is 1,000 euros. Whereas bond investments are often targeted solely towards large or institutional investors, our offering is primarily intended for retail investors in Estonia, but also in Latvia and Lithuania.
Term 10 years
LHV Group subordinated bonds are a long-term investment. The maturity date for the bonds to be issued is 15 November 2034. LHV has the right to redeem the bonds in whole or in part after 15 November 2029. Early redemption of bonds must be approved by the European Central Bank.
Interest rate 6% per annum
Investors regularly earn interest on their bond investment. Annual interest of 6% is paid out in four instalments every quarter to the investor’s account.
Required securities account
All private Estonian, Latvian, and Lithuanian investors and companies will be able to subscribe for bonds. Purchasing of bonds requires a Baltic securities account. Opening a Baltic securities account with LHV Pank is free of charge.
Listed on the stock exchange
LHV Group subordinated bonds will be listed under Baltic Bonds on the Nasdaq Tallinn Stock Exchange. Investors can freely trade the bonds, i.e., they are free to purchase and sell the bonds in a regulated form.
Transparent reporting
LHV Group is a licensed and highly transparent financial institution. As a public company, we prepare and publish quarterly reports, in which we provide detailed overviews of LHV’s business activities and the risks involved therein.
LHV Group is the only publicly traded company on the Baltic Stock Exchange that publishes long-term financial forecasts. We are the company with the best investor relations on the Nasdaq Tallinn Stock Exchange.
Prospectus, terms and conditions
Please read the Prospectus of LHV Group Subordinated Bonds and its Estonian translation, the Terms and Conditions of the Bonds and their Estonian translation, and the Final Terms of the Issuance and the Summary of the Prospectus and their Estonian translations, as well as, if desired, their Latvian and Lithuanian translations.
Creating Estonian capital together
LHV is the perfect place for safeguarding and growing your savings. By subscribing to LHV subordinated bonds you help to increase the importance of LHV capital in both the domestic and international financial markets.
Promotion of the Estonian economy and capital market is part of LHV’s mission. Our aim is to serve society by making financial services and capital increasingly accessible. In Estonia, we are actively mobilising deposits from people and businesses to help realise their plans and dreams. We help you invest in the future and secure the assets you accumulate. LHV Bank, based in the United Kingdom, provides banking services to financial intermediaries and loans to small and medium-sized enterprises, and prepares for the provision of retail banking. By supporting bold ventures and taking banking services developed in Estonia to the world, we are making Estonia bigger. As an LHV Group investor, you can be part of this success and help build Estonia’s capital.
LHV is the largest domestic capital provider
LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank. Banking services are used by more than 445,000 clients, LHV pension funds have 116,000 active clients, and 169,000 clients are covered by LHV Kindlustus.
We are an innovative and forward-thinking provider of financial services
We are innovative and offer our clients simple and convenient services. We implement our strategic strengths – investment, entrepreneurial, and technology expertise – to grow into a pioneering, influential, and viable financial group based on Estonian capital. We focus on the best client relationship, user convenience, and client experience. In the United Kingdom, we want to be an actual bank with the best technology and the most inclusive financial services partner for both international payment intermediaries and small businesses. LHV Varahaldus aims to provide the best long-term rate of return with broad-based and crisis-proof funds. The products of LHV Kindlustus are made specifically for Estonian people with their needs in mind and offer a truly broad range of protection.
Unique investment opportunity
To support LHV’s objectives, we are launching a subordinated bond issue as part of our new bond programme. Investors can earn 6% annual interest on their contribution.
The capital raised in this way can be used to strengthen the composition of own funds and ensure stable access to additional capital to support further growth and market position.
In order to participate in the offering, the investor must have a Baltic securities account opened with an Estonian, Latvian, and Lithuanian account-managing financial institution that is a member of the Estonian securities settlement system.
Yes, in the case of bonds, the investment account system can be used (only) by an Estonian resident investor, in which case the interest will be paid out in the gross amount. LHV should be informed about the investment account. At LHV Pank, this can be done under the menu item ‘Accounts and limits’ > ‘Active accounts’ > pencil icon. Please check the field ‘Investment account’. If it is already checked, we will take it into consideration automatically in the case of the next interest payment on LHV bonds. The income received on the financial assets of a non-resident is taxed in their country of residence.
A margin loan cannot be used to subscribe for bonds.
Subscribe to LHV subordinated bonds,
become part of the growth of a domestic financial group in both the local and international financial services market, and earn a stable rate of return.
Subscribing to LHV subordinated bonds began on 29 October at 10:00.
To subscribe in other banks, please log in to your internet bank or ask a consultant for help.
This information is an advertisement of securities within the meaning of Regulation (EU) 2017/1129 and does not constitute an offer of bonds of AS LHV Group or an invitation to subscribe for or acquire bonds. The offer of the bonds will be made on the basis of the Terms and Conditions of the Prospectus published on the day of the public offer of the bonds and approved by the Finantsinspektsioon (Estonian Financial Supervision Authority), and the Final Terms of the First Issue. The Prospectus is available on the websites of the Finantsinspektsioon and AS LHV Group at fi.ee and investor.lhv.ee, respectively, where the Terms and Conditions referred to and the Summary of the Prospectus are also available. Investors should read the information published in the Prospectus, its Terms and Conditions, and the Final Terms of the First Issue before making an investment decision in order to understand all the facts relating to the investment. The approval of the prospectus by the Finantsinspektsioon does not constitute an approval of AS LHV Group or the securities offered. The bonds are publicly offered in the Republic of Estonia, the Republic of Latvia, and the Republic of Lithuania.
