As of the 15th of December, Citadele Bank’s subordinated bonds have been listed on the Baltic Bond List by Nasdaq Riga. This marks the first time that Citadele’s bonds have been listed in a stock exchange. As per the stock exchange’s traditions, the event was marked by ringing the symbolic bell in the Nasdaq Riga office at the start of trading on December 15th.
The size of the Citadele bond issue is 40 million Euro. The funds will be used to further strengthen the bank’s subordinated capital by making an early repayment on the subordinated debt owed to the Latvian Privatisation Agency.
"By listing our bonds on the stock exchange, Citadele's name is registered in the capital markets for the first time; this is a testament to Citadele's development and success in the finance sphere up to this point. We, like many other businesses, would like the financial market to develop in this country, and we will do everything in our power to ensure this," said Citadele Chairman of the Board Guntis Beļavskis.
In the first issue of the first series of subordinated bonds, 4000 bonds with a nominal value of 10,000 Euro were issued. Interest payments are to be made twice per year, and the annual interest rate is 6.25%. The maturity date is in 10 years, but the bank retains the right to redeem the bonds before this. The Citadele stock exchange code is CBL.