Citadele bank has completed an oversubscribed issuance of EUR 35 million of Senior Unsecured Preferred Bonds. With the total demand for bonds exceeding EUR 46 million, the minimum offered amount of EUR 10 million was oversubscribed, enabling Citadele to increase the issue volume to the predetermined maximum size of EUR 35 million.
Bonds were issued with two years maturity and a fixed interest rate of 5% per annum, resetting on 14 October 2025 to the floating interest rate of EURIBOR 3 months plus 2.3% per annum.
“The robust financial performance of Citadele allowed us to set the planned bond offering size flexibly, achieving a competitively priced deal execution at a fixed coupon of 5.00%, representing a 225bps premium over the market rates. We are particularly proud of our decision to implement a multi-day bond subscription period. This approach allowed a broader group of Baltic institutional and professional investors to participate, confirming our commitment to the development of the Baltic capital markets. This strategy ensures that both the capital raised, and the interest payable remain within the Baltic economies, further contributing to economic growth", says Rūta Ežerskienė, Chair of the Management Board, Chief Executive Officer.
The net proceeds from the offer are to be used by Citadele for general corporate purposes, including compliance with the Minimum Requirement for Own Funds and Eligible Liabilities. The Bonds were offered to qualified investors in Latvia, Estonia, as well as elsewhere in the EEA.
In total, more than 30 qualified investors participated in the offering. Out of the total order book, 57% was received from investors in Latvia, 8% from Estonia and 35% from Lithuania.