Outcome of Subscription to AS LHV Group Subordinated Bonds

The public offering of AS LHV Group subordinated bonds ended on Friday, 25 September. As the initial issue volume of EUR 25 million was oversubscribed, LHV Group used its right to increase the issue volume to the maximum permitted volume of EUR 35 million.
Altogether 3,069 investors participated in the issue, subscribing to subordinated bonds for a total of EUR 85.3 million. This means that the initial issue volume was oversubscribed 3.4 times. The subscription period started at 10.00 on 16 September and ended at 16.00 on 25 September.The Supervisory Board of AS LHV Group decided to allocate the subordinated bonds based on the following principles:All subscription orders of the same subscriber were summed up;All subscriptions up to the threshold of EUR 5,000 were fulfilled;LHV’s previous investors, whose subscriptions exceeded the threshold, were allocated 38.50% of the amount exceeding the EUR 5,000 threshold;LHV’s previous customers, whose subscriptions exceeded the threshold, were allocated 19.50% of the amount exceeding the EUR 5,000 threshold;New investors, whose subscriptions exceeded the threshold, were allocated 9.25% of the amount exceeding the EUR 5,000 threshold;The number of bonds with decimal places was rounded to the previous whole number.Out of the 3,069 subscribers 55.7% received bonds in the desired volume. 44.3% of investors were allocated less bonds than they desired.“Investors showed great interest and trust towards LHV and our ambitions. LHV’s largest bond issue to date, was subscribed to by the most investors to date and they also wished to invest the highest sum to date. The funds raised help us strengthen our capital structure and support the growth of our business and market position. The loan portfolio of LHV is growing swiftly, also we are finalizing the acquiring of Danske’s Estonian corporate and local governments’ credit portfolio. As with previous issues, we wanted to see all subscribers as our investors, however regarding the allocation of bonds we preferred the existing securities’ owners first and secondly customers of LHV,” Madis Toomsalu, CEO of LHV Group commented.The offering  was conducted on the basis of the prospectus of subordinated bonds registered by the Estonian Financial Supervision Authority on 7 September 2020 and the terms and conditions of the subordinated bonds approved by the Management Board of LHV Group on 3 September 2020.
As a result of the issue LHV Group issued subordinated bonds with a nominal value of 1,000 euros, an interest rate of 6.0% per annum and a maturity date of 30 September 2030. The bonds will be transferred to the investors’ securities accounts presumably on 30 September 2020, and will be admitted to trading on the Baltic Bond List of Nasdaq Tallinn Stock Exchange on or about 1 October 2020.LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank and LHV Varahaldus. LHV employs more than 480 people. LHV’s banking services are used by more than 231,000 clients, and pension funds managed by LHV have over 182,000 active clients. LHV’s UK branch offers banking infrastructure to 120 international financial services companies, via which LHV’s payment services reach clients around the world. Priit Rum
LHV Head of Communications
Phone: 502 0786
E-mail: priit.rum@lhv.ee