Translated versions of this PSD: Latvian | Lithuanian | Estonian
Investments of up to EUR 150 million in a series of senior bonds to be issued by Luminor Bank AS in Estonia ("the Issuer") under the Euro Medium Term Note Programme ("Programme") over the next three years and admitted for trading on the Irish Stock Exchange. EBRD's investment in each issue will be limited to up to 20% of the aggregate principal amount of each issue.
On 10 October 2018, EBRD invested EUR 60 million in the first issuance of EUR 350 million under the Programme.
On 11 June 2019, EBRD invested EUR 40 million in the second issuance of EUR 300 million under the Programme.
The project aims to support the Issuer raise medium-term funding in the capital markets in order to diversify the funding sources and establish itself as a self-sustainable pan-Baltic financial institution.
The project will support the resilience of the financial sector and markets by (i) increasing the supply of investable listed instruments for local pension funds and other institutional investors, (ii) helping the diversification of the funding sources for the Issuer and decreasing the dependence on the parents, and (iii) supporting an orderly replacement of two Nordic banks, while mitigating the risk to stable and competitive financial intermediation in the Baltic countries. The Competitive transition quality is underpinned by the Issuer's ability to derive efficiency gains from further operational restructuring and improved funding mix.
LUMINOR BANK AS
The Issuer belongs to the Luminor Group. The Luminor Group currently comprises Luminor Group AB and its direct and indirect subsidiaries in Estonia, Latvia and Lithuania. Luminor Group AB, the holding company established in Sweden, has Nordea Bank Abp ("Nordea", Nordea Bank AB (publ) (Sweden) merged into Nordea Bank Abp (Finland) on 1 October 2018) and DNB Bank ASA ("DNB") as its main shareholders, based on an agreement to merge their Baltic operations in Estonia, Latvia and Lithuania. Luminor Group AB owns 100% of the shares of the Issuer, as well as of Luminor Latvia and Luminor Lithuania.
Luminor Group is the third largest financial services group on the Baltic market in terms of total assets and customer loans and deposits (according to the financial statements published by Baltic banks), providing retail, corporate and private banking as well as other financial services.
EBRD Finance Summary
For the first issuance under the Programme, EBRD invested EUR 60 million.
For the second issuance under the Programme, EBRD invested EUR 40 million.
Total Project Cost
The size of the first issuance under the Programme was EUR 350 million and the size of the second issuance under the Programme was EUR 300 million. The total size of the Programme is EUR 3 billion.
Environmental and Social Summary
Categorised FI (ESP 2014). Due diligence has shown that Luminor Bank (Luminor) has designated staff in each country responsible for oversight of Environmental & Social issues, and whilst they do not have a formal Environmental and Social Management System in place Luminor does have a Corporate Social Responsibility Policy which set out it's E&S policy commitments. For this transaction Luminor will be required to comply with PRs 2, 4 and 9 and submit Annual E&S Reports to the Bank on implementation of the E&S requirements and compliance with the PRs. To support their implementation of the EBRD's PRs, Luminor has been provided with guidance on how to implement PRs 2 and 4 as well as the E&S Due Diligence Toolkit; EBRD's E&S Risk Management Procedures for Corporate, SME and Micro Lending; access to the EBRD's E&S e-Learning training programme and to EBRD's sub-sectoral industry guidelines.
Company Contact Information
+372 628 3300
Luminor Bank A.S. Liivalaia 45 10145 Tallinn Estonia
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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