Luminor has completed a €300m, 3‑year senior preferred issue. The transaction, which was priced on 10 January, supports Luminor’s growth strategy, strengthens its MREL base, and enhances its liability structure.
Luminor held a digital roadshow with a well‑attended global investor call on 9 January and, after receiving positive feedback, launched its new issue on 10 January. The offer was quickly oversubscribed with orders from over 90 investors located across Europe. The size, quality and diversity of the orders enabled Luminor to tighten the price of the new security by 25 basis points from initial indications. Investors in the UK accounted for just under half of the total order book, with further good demand from investors in German‑speaking Europe and the Baltic region.
Palle Nordahl, Luminor Bank’s Chief Financial Officer, commented:
‘We are delighted to have re‑opened the market for Baltic borrowers once again with the issue of our latest senior notes. The significant support from investors demonstrates the solid standing of Luminor. The issue ensures we are well placed to support our clients and grow our business throughout our home markets of Estonia, Latvia and Lithuania.
The bond, which is callable one‑year prior to maturity and 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 the transaction.
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