Luminor has completed a €500m, 5-year covered bond issue. The transaction, which was priced on 11 May, supports Luminor’s growth strategy and enhances its liability structure.
Palle Nordahl, Luminor Bank’s Chief Financial Officer, commented:
We are delighted to have issued our second benchmark covered bond, after our inaugural issue in March 2020. The significant support from investors demonstrates the solid standing of Luminor and positive outlook for the Baltic economies. The issue ensures we are well placed to support our clients and grow our business throughout our home markets of Estonia, Latvia and Lithuania.
Luminor held a series of virtual meetings with European investors on 10 May and, after receiving positive feedback, launched its new issue the following day. The issue was quickly oversubscribed with orders from over 30 investors located across Europe. The size, quality and diversity of the orders enabled Luminor to price the new security with a coupon of 1.688%. Orders from investors in German-speaking Europe accounted for a little under one third of the total book, with further good demand from investors in the Nordic and Baltic regions.
The bond, which is rated Aa1 by Moody’s, is listed on the Irish Stock Exchange and was issued under Luminor’s EMTN and Covered Bond programme. Luminor Markets acted as a joint lead manager for the transaction.
Luminor is the leading independent bank in the Baltics and the third-largest provider of financial services in our region. We serve the financial needs of individuals, families, and companies. Just like our home markets of Estonia, Latvia, and Lithuania we are young, dynamic, and forward looking.
Further information about us can be found at www.luminor.lv.