In addition, the bank has repurchased €237.8m of two existing bonds. The transactions closed on June 8, the bank said in a press release.
Palle Nordahl, Chief Financial Officer, said: "We have taken an important step to meet our future regulatory requirements, while also enhancing our liability structure and building our investor base."
Luminor’s existing senior bonds will mature in 2024.
The new issue was oversubscribed with Luminor receiving orders from over 60 investors located across more than 20 countries. Luminor priced the new security with a coupon of 7.75%. Orders from investors in the United Kingdom accounted for a third of the total book with good demand also seen from investors in the Baltic and Nordic regions.
The bond, which is callable one year prior to maturity and is rated Baa1 by Moody’s, is listed on the Irish Stock Exchange and was issued under Luminor’s Euro Medium Term Note and Covered Bond program.
Luminor is the third-largest provider of financial services in the Baltic states.