Public offering of Bigbank subordinated bonds

The general goal of this offering is to strengthen the capital structure of the group and secure stable access to additional capital to finance the group’s budget and growth, as outlined in Bigbank's strategic plan.

The bank intends to use the revenue from the bond issue to cover the additional credit risk arising from the growth of the group's corporate and home loan portfolios in Estonia, Latvia, and Lithuania, and to meet regulatory capital requirements.

The revenue may also be used for the premature redemption of existing unsecured subordinated bonds issued by Bigbank, provided that Bigbank is entitled to redeem such bonds prematurely in accordance with the applicable bond terms.

The public offer is aimed at all retail and professional investors in Estonia, Latvia, and Lithuania. More details can be found in the prospectus and final terms.

Estonia
Through all banks that act as securities account operators with Nasdaq CSD, including Swedbank, SEB Pank, Luminor Bank, and LHV Pank. The complete list of securities account operators can be found here.
Latvia
Through any member of Nasdaq Tallinn Stock Exchange (including Swedbank, SEB banka, Citadele banka)
Lithuania
Through any member of Nasdaq Tallinn Stock Exchange (including Swedbank, SEB Bankas, Luminor Bank, Šiaulių Bankas)

The complete list of members of the exchange can be found here.

All legal entities subscribing to bonds must have a valid LEI code. Account managers or banks may refuse to accept transaction orders from legal entities that do not have an LEI code.

The nominal value is 1,000 euros per bond.

Interest rate is 6.5% per annum (calculated on a 30/360 basis), which means the quarterly interest payment is 16.25 euros per bond. Payments are made on or around 15 December, 15 March, 15 June, and 15 September, with the first interest payment scheduled for 15 December 2024.

During the offering, Bigbank is offering up to 3,000 unsecured subordinated bonds, which can be increased to 8,000 bonds in case of oversubscription. This means the total value of the offering is 3 million euros, which can be increased to 8 million euros. As part of the total bond program, up to 30,000 bonds with a total value of up to 30 million euros are planned to be issued.

In case of oversubscription, Bigbank has the right to increase the volume of the issue to up to 8,000,000 euros. When distributing bonds among subscribers, Bigbank has the right, but not the obligation, to give priority to its employees over other investors. If mathematically possible, we guarantee each retail investor a minimum allocation of 10 bonds in the total amount of 10,000 euros. More detailed information about the distribution of bonds in the offer can be found in the prospectus.

Bigbank will submit an application to the Nasdaq Tallinn Stock Exchange operator for listing and admission to trading of all the bonds issued during the offering on the Baltic Bond List of the Nasdaq Tallinn Stock Exchange. The expected date of listing and admission to trading is on or around 24 October 2024. 

Once the bonds are listed on the Nasdaq Tallinn Stock Exchange's Baltic Bond List, they can be freely traded on the exchange at any time. Bigbank also has the right to redeem the bonds prematurely at their nominal price 5 years after issuance, but only with the consent of the Financial Supervision Authority.

Yes, you can. In this case, at least 15 days prior to the first coupon payment, you must submit a notification through the Bigbank website stating that you have purchased Bigbank subordinated bonds using funds from an investment account or pension investment account.

The bank withholds income tax at the rate specified by the laws of the Republic of Estonia from interest payments made to Estonian tax resident private individuals. Income tax is not withheld from interest payments made to legal entities and non-residents. Private individuals in Estonia who have purchased the bonds via an investment account or pension investment account and informed Bigbank accordingly will not have income tax withheld from interest payments. If you have purchased bonds through an investment account or pension investment account, please notify at least 15 days before the first coupon payment on the Bigbank investor website. Further information is available in the prospectus.

The results and allocation of the issue will be announced on or around 21 October 2024 on Nasdaq Tallinn's website via a stock exchange announcement. After the announcement of the offering results, each subscriber can obtain information about the number of bonds they received from the bank through which they subscribed.

For more information, please refer to the prospectus, including its supplement 1 and supplement 2, the prospectus summary, the terms and conditions, and the final terms.