Holm Bank, based on Estonian capital, announced a public offering of subordinated bonds, within the framework of which it plans to raise up to 2 million euros with a fixed interest rate of 9.5% to strengthen its capital base and continue to grow its loan portfolio.
In the offer starting on May 10 and lasting until May 24, both retail and institutional investors can subscribe to unsecured subordinated bonds with a maturity of 10 years. The annual interest of the bonds is 9.5% and payments are made twice a year. 2,000 bonds with a nominal value of 1,000 euros will be offered. The bonds are planned to be traded on First North, a multilateral trading system organized by Nasdaq Tallinn.
“Holm has been preparing to attract investors since the acquisition of the banking license in 2019. We have made large investments in developments, which have enabled us to bring a large number of new modern loan products to the market in Estonia and Latvia. The year 2023 turned out to be the most successful year in our operating history, when Holm’s net loan portfolio grew by 41%, the volume of deposits by 49%, and the company earned a record 1.6 million euros in net profit. The issue of AT1 bonds, which are included in the additional capital of the first level, also took place,” said CEO Kaspar Kalvet.
According to him, among the banks under the supervision of the Financial Supervision Authority, Holm is the fastest growing bank in Estonia based on the growth percentage of the loan volume in 2023.
“Our loan volume has grown by an average of 36% per year over the past five years, and this momentum is certainly not slowing down in the coming years. We are entering the next phase of growth and plan to expand our versatile portfolio both in Estonia and Latvia, increase the recognition of the Holm brand and multiply our profitability. We want to give all interested parties the opportunity to be a part of the success we plan to achieve on this journey,” said Kalvet.
According to him, Holm’s main competitive advantage is that the bank focuses on specific services with high demand and growth potential. “This has given us the opportunity to be flexible and respond quickly to customer expectations. We have been able to introduce a number of new loan products to the market in a short period of time, while maintaining the high quality of loans – the proportion of our non-performing loans is low and the proportion of guaranteed loans is increasing over time,” said Kalvet.
Holm issues bonds with a term of 10 years, with the permission of the Financial Supervision Authority, the bank has the right but not the obligation to redeem the bonds early after 5 years. The offer is the first part of the unsecured subordinated bond program approved in May 2024, within the framework of which Holm can raise a total of up to 8 million euros.
Holm Bank AS is a bank based on Estonian capital, licensed by the European Central Bank. Holm Bank owns the brands Liisi and Holm. The bank’s services include term deposits, physical and virtual credit cards, financing for private and business customers, and installment payments. The bank also offers term deposits in Germany and Austria and owns the company Holm Bank Latvia SIA, which operates as a financial service provider in Latvia.
2024-05-09 09:52:22
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