Luminor has completed its inaugural Tier 2 capital security, a €200m 11-year subordinated bond issue.
Luminor launched the issue on Monday 7 October and was oversubscribed quickly with Luminor receiving over €800m in orders from nearly 100 investors located across 25 countries. The size, quality, and diversity of the orders enabled Luminor to price the security at a spread of 300 basis points over mid-swaps with a coupon of 5.399%. The majority of bonds were sold to investors in the UK with good demand seen also from investors in German-speaking countries together with France and the Netherlands.
The bond, which is callable during a 3-month par call period ending five-years prior to maturity and is rated Baa3 by Moody’s, is listed on the Global Exchange Market of Euronext Dublin and was issued under a standalone Offering Circular. Morgan Stanley was sole bookrunner for the transaction.
Johannes Proksch, Chief Financial Officer, commented;
‘I am delighted with the interest we received from investors across Europe in our initial Tier 2 capital security issue. Their investment is a vote of confidence in the Baltic countries and in Luminor. Our maiden subordinated security extends our liability structure, increases the efficiency of our capital, and builds our investor base.
