12.06.2025
AS LHV Group issued senior unsecured bonds in the amount of 60 million euros. The term of the bonds is four years, the issuer has the right to repurchase the bonds one year before the redemption date.
The unsecured bonds were sold mainly to institutional investors in the Baltics and Central and Eastern Europe. Investors include asset management companies, supranational investors and banks. The bonds were distributed to a total of 14 investors.
The bonds were issued at a yield of 4.24%, with a margin of 215 basis points above the base rate. The bonds will be redeemed on June 18, 2029, and a year before that, the issuer has the right to repurchase the bonds early. Issued bonds are eligible debt obligations within the meaning of the MREL (Minimum Requirement for Own Funds and Eligible Liabilities) regulation.
“Another successful issuance of MREL instruments confirms LHV's ability to attract long-term financing from international markets. A 60-million-euro issue strengthens our financial position, supports the bank's continued growth, and ensures compliance with trust regulations. This is already the third time this year that international investors have given a strong signal of confidence in LHV's business model and strategic direction. We have been consistently active in the MREL market for several years and as a valued partner we have positioned ourselves as a reliable and transparent issuer," commented Juhan Peet, Head of Treasury at LHV Group.
The bonds are listed on the Euronext Dublin Stock Exchange. As a long-term debt issuer, LHV Group's credit rating is Baa3 with a positive outlook (Moody's). The expected rating of the bonds is also Baa3. The credit rating of LHV Pank's deposits is A3 with a positive outlook (Moody's).
The organizer of the transaction was ERSTE Group Bank AG.
LHV Group is the largest domestic financial group and capital provider in Estonia. The LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,100 people. As at the end of March, LHV’s banking services are being used by 465,000 clients, the pension funds managed by LHV have 118,000 active clients, and LHV Kindlustus is protecting a total of 174,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.
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