BluOr Bank launches € 7 million public bond offering

BluOr Bank has launched the initial public offering of the first issue of unsecured subordinated bonds to Latvian, Estonian and Lithuanian investors, which will last from May 16 to May 27 this year, the bank’s representatives inform.

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BluOr Bank plans to issue the first 7-year unsecured subordinated bond issue of up to 7 million euros.

The nominal value of one bond is 1,000 euros. The maturity of the bonds is 7 years and the interest rate is 7% per annum. Interest payments on the bonds will be made every three months.

The bonds are publicly offered to investors in Latvia, Estonia and Lithuania, as well as institutional and private investors from separately selected European Economic Area member states will be able to participate in the offer, in accordance with the provisions of the bond issue base prospectus. The bonds are expected to be listed on the Nasdaq Riga Baltic Debt Securities List. Immediately after the start of trading, Nasdaq Riga subordinated bonds will be freely available for purchase and sale on the regulated market.

The proceeds from the bond issue will be used to strengthen the bank’s capital, which in turn will allow for better development of the bank’s services – promoting lending, attracting deposits and strengthening market positions, promoting the country’s economic growth and strengthening local businesses.

“BluOr banka is actively lending to companies in the Latvian market, so attracting additional cash resources is one of the preconditions for the bank’s growth, which allows it to issue more and more loans,” notes Dmitrijs Latiševs, CEO of BluOr Bank. “The more free funds there are, the more loans we can issue to entrepreneurs on the most advantageous terms possible, thus significantly expanding lending opportunities for small and medium-sized enterprises as well,” adds Latiševs.

BluOr Bank bonds are a complex financial instrument and are not suitable for all investors. Before investing, everyone is invited to carefully read the issue prospectus to find out about the possible risks and benefits, the bank explains.

On May 10, 2022, the Latvian Financial and Capital Market Commission approved the base prospectus of BluOr Bank’s unsecured subordinated bond program. The total amount of the Bank’s subordinated bond program in nominal value is up to 15 million euros.