Šiaulių bankas AB issues EUR 50 million subordinated bonds | MarketScreener

Šiaulių bankas AB has achieved a victory by issuing subordinated bonds worth EUR 50 million for a ten-year period in the global financial markets. The bond will have a 10.75% coupon. The bank will include these subordinated bonds in its Tier 2 Capital. This move will help the bank to have a more extensive capital base, leading to better growth opportunities and higher returns for its shareholders in the future.

As our growth continues, we're becoming increasingly appealing to Lithuanian and foreign investors. Our presence in international markets is expanding, and our recent subordinated bond issue has generated more investor interest than we anticipated. The funds we've raised will allow us to maintain lending levels for Lithuanian businesses, establish an effective capital structure, fulfill supervisory requirements, and keep up with our dividend policy. These goals were shared by Tomas Varenbergas, Head of Treasury and Markets at Šiaulių bankas AB.

The issuer of the bonds has the option to redeem them before their maturity date, which is on June 22, 2033. This option will be available to them starting on June 22, 2028, which is five years from the bond's issuing date. The bank also has the choice to offer a new coupon made up of a fixed and floating part, at a rate of 750 basis points plus the 5-year Mid-Swap Rate.

The bank issued bonds worth less than EUR 100 million as part of their Subordinated Bond Programme, which was approved by the Bank of Lithuania on June 13th, 2023. These bonds will be added to the Nasdaq Vilnius Bond List. Moody's, an international rating agency, has given the subordinated bonds a rating of Ba1.

More details: Tomas Varenbergas is in charge of the Treasury and Markets department. His email is [email protected] and you can contact him on +370 5 2032 200.