Bigbank bonds oversubscribed threefold
Bigbank's unsecured subordinated bond public offering was oversubscribed by investors threefold. The bank exercised its right to increase the base volume of the issuance, resulting in the issuance of new bonds totaling €7 million instead of the initially planned €3 million.
A total of 929 investors participated in the subscription, collectively subscribing to €9,006,000 worth of subordinated bonds.
In the allocation of subordinated bonds, Bigbank's management decided to sum all subscription orders made by the same subscriber and to fully satisfy subscriptions up to €30,000 for all investors. Employees of companies within the Bigbank group were allocated 100 percent of their subscribed amount, while other investors received 33 percent of their subscribed amount exceeding €30,000. The number of bonds with fractional amounts was rounded to the nearest whole number.
The bonds will be transferred to investors' securities accounts on or around May 29, and their first trading day on the Nasdaq Tallinn Stock Exchange's Baltic Bond List will be on or around May 30.
The public offering of Bigbank AS' unsecured subordinated bonds lasted from May 14 to May 24. This was the second series in Bigbank's unsecured subordinated bond program, under which Bigbank can raise up to €30 million in total.
Under the second series, Bigbank offered up to 3,000 unsecured subordinated bonds with a nominal value of €1,000, a maturity date of May 29, 2034, and a fixed annual interest rate of 7 percent paid quarterly. In case of oversubscription, Bigbank had the right to increase the offering volume by up to 7,000 additional bonds, bringing the total to up to 10,000 bonds. Bigbank exercised this right, increasing the total volume of the current series offering to €7 million. The offering took place in Estonia, Latvia, and Lithuania.
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Editor: Marcus Turovski
