of LHV's subordinated bonds

Subscribe to LHV subordinated bonds and become part of the growth of a domestic financial group in both the local and international financial services market.

Bond subscription began on 12 September at 10.00 and ended on 26 September at 16.00. Bonds will be issued on 29 September 2023 and listed on 2 October 2023.

LHV Group will publicly offer up to 25,000 subordinated bonds. In case of oversubscription, LHV Group has the right to increase the volume of the offer and issue up to 10,000 additional subordinated bonds. The maximum bid is therefore EUR 35 million.

The subordinated bond offering is intended for retail and institutional investors operating in Estonia and has been made available to clients of all account-managing banks. To subscribe for bonds in LHV Pank, please log in 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 12 September at 10.00.

LHV subordinated bond prospectus

This is the first issue under a new bond programme of up to EUR 200 million, under which we intend to issue subordinated bonds in the volume of up to EUR 25 million (with the possibility to increase the volume up to EUR 35 million). The bonds have a maturity of 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

First subordinated bond issue of LHV Group will have a volume of up to EUR 25 million. In the event of oversubscription, the issue size may be increased to up to EUR 35 million.

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 EUR 1,000. Whereas bond investments are often targeted solely towards large or institutional investors, our offering is primarily intended for Estonian retail investors.

Term 10 years

LHV Group subordinated bonds are a long-term investment. The maturity date for the bonds to be issued is 29 September 2033. LHV has the right to redeem the bonds in whole or in part after 26 September 2028. Early redemption of bonds must be approved by the European Central Bank.

Interest rate 10.5% per annum

Investors regularly earn interest on their bond investment. 10.5% annual interest is paid in four instalments each quarter into the investor’s account.

Required securities account

All private Estonian investors and companies will be able to subscribe to bonds during issuing. 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.

Best investor relations of the year

Prospectus, terms and conditions

Creating Estonian capital together

LHV is the perfect place for safeguarding and growing your savings. Subscribe to LHV subordinated bonds and help increase the importance of LHV capital in 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 projects. We help you invest for 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. 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 biggest provider of domestic capital

Estonian people and companies hold EUR 9 billion in financial assets with LHV. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank. Banking services are used by more than 400,000 clients, LHV pension funds have 127,000 active clients, and 161,000 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 the most inclusive financial services partner for international payment intermediaries and small businesses alike. 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 the first issue of subordinated bonds under the new bond programme. Investors can earn 10.5% annual interest on their contribution.

The capital raised in this way can be used to strengthen own funds and ensure stable access to additional capital. The increase in business volumes requiring equity mainly comes from lending activities and growth in the United Kingdom business. According to the rules set for banks, we have to hold a fixed amount of own funds, which can be either equity or subordinated debt, for each loan issued.

To take part in the retail offering, the investor must have an Estonian address registered in the Nasdaq CSD system or, in the case of a legal person, their registry code in Nasdaq CSD must have been issued by the Estonian Commercial Register. These data generally are transferred automatically by the bank that manages the account.

The investment account system can be used for bonds. In this case, interest will be paid in the gross amount. LHV should be notified regarding the investment account. You can do this in LHV Bank by accessing the menu Accounts and limits > Active accounts > pencil icon and tick the checkbox "Investment account". If there is already a checkmark there, we will automatically take this into consideration for the next interest paid on LHV bonds.

LHV Bank clients cannot use the Margin Loan for subscribing to the LHV bond.

Subscribe to LHV subordinated bonds and become part of the growth of a domestic financial group in both the local and international financial services market.

Subscribing to LHV subordinated bonds began on 12 September 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 EU Regulation 2017/1129/EU 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 Financial Supervision Authority, and the Final Terms of the First Issue. The Prospectus is available on the websites of the Financial Supervision Authority and AS LHV Group at and, 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 Financial Supervision Authority does not constitute an approval of AS LHV Group or the securities offered. The bonds are offered to the public only in the Republic of Estonia.


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