Latvia’s ABLV Bank Sells $20 Million of 2023 Bonds, Plans More

ABLV Bank AS, Latvia’s fourth- biggest bank by assets, sold $20 million of 10-year debt and said it was preparing another series of bonds worth several hundreds of millions of dollars.

The new bonds have a 4.5 percent discount rate with no coupon payments until March 18, 2018, when ABLV may redeem them early, the lender said today on the website of the Nasdaq OMX Riga exchange. After that, they’ll carry a 6 percent coupon with payment semi-annually, it said. The bonds were sold to 36 clients of the bank at 80.051 percent of their $100 face value.

Under a program to replace long-term deposits with bonds, Riga-based ABLV said it has placed 12 debt issues in the past 18 months for a total of 150 million lati ($277 million). The bonds trade publicly on the exchange in the Latvian capital.

“We plan to approve another bond issue program soon, under which we will perform a public offering of bond issues” for as much as 200 million lati, Chief Executive Officer Ernests Bernis said in the statement.

To contact the reporter on this story: Bryan Bradley in Vilnius at bbradley13@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.