LHV: Subscription results of subordinated bonds of AS LHV Group
In total 935 investors participated in the offering and subscribed for the subordinated bonds in the overall amount of EUR 25.697 million. The subscription period started on 5 October and ended at 5 p.m. on 26 October.
LHV Group allocated bonds to all investors who subscribed up to the amount of EUR 10,000 (incl.) in full. Subscribers who exceeded that amount were allocated 45.8% of the sum exceeding EUR 10,000. The amount of the distributed bonds was rounded to the nearest whole number.
Of the 935 subscribers 68% received bonds in the desired volume. 32% of the investors received less bonds than they subscribed for.
According to Mr. Erkki Raasuke, Managing Director of LHV Group, the offering was successful. “It was our intention to involve a wider range of investors and it succeeded. Our investor base multiplied. We are grateful and proud that such a large number of investors showed their support and trust for LHV”, commented Mr Raasuke.
LHV will use the subordinated capital raised from investors in the composition of own funds to support the growth of its business volumes.
LHV is issuing new 10-year subordinated bonds with the interest rate of 6.5% per annum. Face value of one bond is 1000 euros. The bonds will be issued on 29 October and listed on Nasdaq Tallinn stock exchange on 2 November 2015.