‘We have taken an important step to meet our future regulatory requirements, while also enhancing our liability structure and building our investor base. These transactions ensure that Luminor is well placed to support our clients and grow our business'.
Luminor held a series of virtual meetings with European investors on 30 May, and launched its new issue following positive feedback. The bank also received good interest from investors who wished to tender their holdings of two of Luminor’s existing senior bonds which mature in 2024.
The new issue was oversubscribed with Luminor receiving orders from over 60 investors located across more than 20 countries. The size, quality and diversity of the orders enabled Luminor to price the new security with a coupon of 7.75%. Orders from investors in the United Kingdom accounted for a third of the total book with good demand also seen from investors in the Baltic and Nordic regions.
The bond, which is callable one year prior to maturity and is rated Baa1 by Moody’s, is listed on the Irish Stock Exchange and was issued under Luminor’s Euro Medium Term Note and Covered Bond programme. Luminor Markets acted as a joint lead manager for both the new issue and the tender offers.
