Luminor bank completes €300m bond issue

Luminor, third-largest provider of financial services in the Baltics, has completed a €300m bond issue, the bank confirmed in a press release. In addition, the bank has repurchased €250m of existing bonds due in 2021. The transactions, were completed on December 3.

Olof Sundblad, Luminor’s Head of Treasury and acting CFO, commented, “We have taken an important step to meet our future regulatory requirements, while also enhancing our liability structure and deepening our investor base.”  

Luminor held a series of virtual meetings with European investors on 23 and 24 November, and launched its new issue following positive feedback and interest amongst investors who wished to tender their holdings of Luminor’s existing 1.5% security due in 2021.

The transaction was "significantly oversubscribed" with Luminor securing orders in excess of €1bn from over 100 investors located across 20 countries. The new security comes with a coupon of 0.792%. Orders from Baltic investors accounted for a fifth of the total book.  

The bond, which is rated Baa2 by Moody’s, is listed on the Irish Stock Exchange.

Luminor is the third-largest provider of financial services in its home markets of Estonia, Latvia and Lithuania. Luminor has some 900,000 clients, 2,355 employees, and a market share of 16.3% in deposits and 17.4% in lending in the Baltics as at the end of September 2020.

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