AS LHV Group
AS LHV Group (LHV) announces a public offering of LHV’s subordinated bonds. This offering was made on the basis of a prospectus confirmed by the Estonian Financial Supervisory and Resolution Authority (FSA) on October 28, 2024, which was disclosed on the LHV and FSA webpages on the date of this announcement. It was done. The public offering of subordinated debt will be conducted in Estonia, Latvia and Lithuania.
This is the second issuance of subordinated debt under the confirmed bond program for 2023, with an aggregate amount of up to EUR 20 million. Under the bond program, €35 million worth of subordinated debt has been issued to date, with total funding available. Up to 200 million euros.
Main conditions of offer
LHV has up to a maximum of EUR 6.00 LHV Group Subordinated Note 24-2034, which is offered to investors with a nominal price of EUR 1,000, a maturity date of November 15, 2034, and a fixed interest rate payable quarterly. We are recruiting 20,000 applicants. 6% per annum. The subordinated bonds will be issued at a price of 1,000 euros per company. The Subordinated Notes will be issued in electronic book-entry form and will be registered on Nasdaq CSD SE under ISIN code EE3300004993.
The offering period for the bonds will begin at 10:00 on October 29, 2024 and end at 16:00 on November 12, 2024. The subordinated debt offering is aimed at retail and institutional investors operating in Estonia, Latvia and Lithuania, and is also available to customers of account management institutions that are members of the Estonian Securities Settlement System. .
The Subordinated Debt represents LHV’s unsecured debt to investors. Subordination of Debentures means that, in the event of liquidation or bankruptcy of LHV, all claims arising from the Subordinated Debentures will become due and payable only after all claims recognized as subordinated in accordance with applicable law have been fully paid. means that Particularly with subordinated debt, the risk of conversion of debt and claims (bail-in risk) must be considered.
Schedule of offerings
October 29, 2024 10:00
Start date of underwriting period for subordinated bonds
November 12, 2024 16:00
End date of underwriting period for subordinated bonds
On or about November 13, 2024
Disclosure of allotment results of subordinated bonds
On or about November 15, 2024
Transfer of subordinated debt to an investor’s brokerage account
On or about November 18, 2024
Plan to list the subordinated bonds and participate in trading on the regulated market operated by Nasdaq Tallinn AS (listed on the Baltic bond list of the Nasdaq Tallinn Stock Exchange)
Submit a subscription agreement
To underwrite the Subordinated Notes, an investor must submit an underwriting agreement during the underwriting period to the custodian that holds the investor’s brokerage account with Nasdaq CSD SE. This form is in the format accepted by the custodian and is in accordance with the prospectus. and present the conditions. Subscription agreements must be submitted before the end of the subscription period. Investor may use any method provided by Investor’s custodian for submitting a Subscription Agreement (e.g., physically at the custodian’s client services venue, over the Internet, or by any other means). ). Subscription agreements will be transferred to Nasdaq CSD SE.
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Admission to listing and trading
LHV will submit an application to Nasdaq Tallinn AS for permission to list and trade LHV’s subordinated debt on the Baltic Bond List of the Nasdaq Tallinn Stock Exchange. The expected listing and trading start date is around November 18, 2024.
Although every effort will be made and due diligence will be taken to ensure that the Subordinated Notes will be allowed to list and trade, LHV cannot guarantee that the Subordinated Notes will be allowed to list and trade.
Prospectus availability and offering conditions
The prospectus has been published and is available in electronic form from the LHV website https://investor.lhv.ee/en/ and the FSA website https://www.fi.ee/en. Additionally, an Estonian translation of the prospectus is disclosed and made available along with the prospectus on the LHV website https://investor.lhv.ee/en. It is also available through the information system of the Nasdaq Tallinn Stock Exchange. The terms of the subordinated notes and the final terms of the offering, the prospectus summary and translations into Estonian, Latvian and Lithuanian are publicly available and are available in electronic form on LHV’s website at https://investor. lhv.ee/en.
Before investing in LHV’s subordinated debt, please familiarize yourself with the prospectus, the terms of the debt, the final terms and, if necessary, consult a professional.
LHV Group is Estonia’s largest domestic financial group and capital provider. The main subsidiaries of LHV Group are LHV Pank, LHV Varahaldus, LHV Kindlustus and LHV Bank Limited. The Group has approximately 1,200 employees. As of the end of September, LHV’s banking services were used by 445,000 customers, pension funds managed by LHV had 116,000 active customers and LHV Kindlustus protected a total of 169,000 customers. The Group’s subsidiary, LHV Bank Limited, holds a banking license in the UK and provides banking services to international financial technology companies, as well as lending to small and medium-sized businesses.
Prith Ram
communication manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee
Important information:
This information is an advertisement of securities within the meaning of Regulation (EU) 2017/1129 and does not constitute an offer to subscribe for or an invitation to subscribe for or obtain debt securities of AS LHV Group. The offering of the Bonds is subject to the terms and conditions of the prospectus issued on the public offering date of the Bonds and approved by the Finantsinspectsioon (Estonian Financial Supervisory and Resolution Authority), as well as the final terms and conditions. First issue. The prospectus is available on the Finantsinspectsioon and AS LHV Group websites (fi.ee and investor.lhv.ee respectively). A summary of the mentioned terms and conditions and prospectus is also available here. Investors should read the information contained in the prospectus, its terms and conditions and the final terms and conditions of the first issue before making any investment decision in order to understand all the facts regarding the investment. Approval of the prospectus by a financial institution does not imply approval of AS LHV Group or the securities offered. The bonds are being offered to the public in the Republic of Estonia, the Republic of Latvia and the Republic of Lithuania.
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