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Bigbank bonds attract seven times more subscribers than anticipated

Bigbank.
Bigbank. Source: Bigbank private library

Bigbank's public issue of bonds, which ended on Friday, attracted seven times more subscribers than anticipated. The bank therefore increased the base size of its issue from €3 million as planned, to €5 million.

A total of 1,847 investors subscribed for Bigbank's subordinated bonds, at a total value of €21.6 million.

According to Martin Länts, chair of Bigbank's management board, the results show that investors have high levels of confidence in the bank's future plans.

"We are really pleased with the strong interest from retail investors, and that is why we gave preference to them in the sub-allocation. With the capital raised, Bigbank will be able to implement its business strategy even more effectively, while at the same time ensuring compliance with the capital requirements," said Länts.

In allocating the subordinated bonds, Bigbank's board of directors decided to aggregate all subscription orders made a single subscriber and to satisfy in full all subscriptions of up to €3,000 made by all investors.

Employees of companies belonging to the Bigbank Group were allocated 100 percent of their subscribed amount. The remaining investors were allocated 2.46 percent of their subscribed amount over and above €3,000.

The bonds will be transferred to investors' securities accounts on or around November 30, with their first day of trading on the stock exchange set for December 1.

Bigbank's public offer of subordinated bonds ran from November 14 — 24. This was the first part of Bigbank's new program of offering unsecured subordinated bonds, with the bank able to raise up to €30 million through the program as whole.

In the context of the offer, Bigbank offered up to 3,000 unsecured subordinated bonds with a nominal value of €1,000, a maturity date of November 30, 2033 and a fixed interest rate of eight percent per annum, payable quarterly. It also included the right to increase the size of the offer by 7,000 bonds to a total of 10,000 in the event of oversubscription.

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Editor: Michael Cole

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