On 9 September 2025, AS LHV Group carried out an issue of Tier 2 subordinated notes in the total nominal amount of EUR 80,000,000 (the ?Notes?) in the international markets. The settlement date of the Notes is 16 September 2025. The Notes are issued in bearer form with a denomination of EUR 100,000, with increments of EUR 1,000.
The Notes mature on 16 September 2035 and have a first call date on 16 September 2030. Until the first call date, the Notes bear interest at a fixed rate of 5.5% per annum, payable annually. Thereafter, the Notes will bear interest at 3-month Euribor plus a margin of 3.25%, payable quarterly.
The issue price of the Notes was 99.817% of the nominal amount, corresponding to a yield of 5.543%. The Notes will be listed on the Global Exchange Market of Euronext Dublin. The Notes were allocated to European investment funds and other qualifying investors.
Asset managers accounted for the majority of the allocations (62%), followed by banks (19%) and investment companies (13%). Baltic and other CEE investors accounted for 22% of the total issue. The net proceeds of the issue amount to EUR 79.85 million.
LHV Group intends to apply for the Notes to be recognised as Tier 2 own funds. As disclosed on 29 August 2025, LHV Group has decided to redeem early the EUR 35 million subordinated notes issued in 2020.
