Luminor has completed a €300m 4-year senior preferred bond issue. In addition, the bank has repurchased €214.1m of an existing bond due to mature in 2026. The transactions closed on 10 and 11 September 2024.
Johannes Proksch, Chief Financial Officer, commented;
“Our new issue and concurrent tender offer enhance our MREL-position, while also extending our liability structure and building our investor base. Together these transactions ensure that Luminor is well placed to support our customers and grow our business.”
Luminor held a series of virtual meetings with European investors on 2 September, and launched its new issue following positive feedback. The bank also received good interest from investors who wished to tender their holdings of Luminor’s existing €300m 7.25% senior bond due January 2026.
The new issue was oversubscribed with Luminor receiving €1.6bn in orders from over 130 investors located across more than 25 countries. The size, quality and diversity of the orders enabled Luminor to price the new security with a coupon of 4.042%. Investors in the United Kingdom accounted for over a third of the total book with good demand also seen from investors in German-speaking Europe, CEE, and BeNeLux.
The bond, which is callable one year prior to maturity and is rated A3 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 the new issue and the tender offer.
