Bigbank AS Introduces Additional Tier 1 Bonds
Bigbank AS is embarking on an exciting journey by conducting a private placement of Additional Tier 1 Temporary Write-Down Notes, commonly known as AT1 bonds. These financial instruments are unique due to their complexity and are tailored specifically for selected investors, steering clear of general public offerings. This strategy targets a niche market, ensuring the bonds reach the right hands.
Investment Details and Key Features
The subscription period for the AT1 bonds is set from March 13 to March 18. A maximum of 300 bonds will be issued, with each bond carrying a nominal value of EUR 10,000. Bigbank AS possesses the flexibility to adjust the issue volume based on market conditions. Investors should note that these bonds come with an attractive annual interest rate of 9%, which will be paid quarterly, alongside a minimum investment threshold of EUR 20,000.
Understanding AT1 Bonds
AT1 bonds represent perpetual and unsecured debt instruments, offering a unique investment avenue. Additionally, contingent upon receiving the necessary approval from the Financial Supervision Authority, Bigbank AS holds the discretion to redeem these bonds, either in part or in full, five years following their issuance. This feature provides a layer of flexibility for the bank and its investors.
Bigbank’s Financial Health and Position
With an impressive history spanning over three decades, Bigbank AS stands as a pillar within the banking sector. As of the latest reports, their total assets amount to €2.9 billion, and their equity stands at €275 million. Operating across nine countries, Bigbank proudly serves over 169,000 active customers with a dedicated team of over 500 employees. The bank’s long-term deposit rating from Moody's is Ba1, showcasing its strong position in the industry, alongside a baseline credit assessment and an adjusted BCA rating of Ba2.
Why Choose Bigbank AS?
Choosing to invest with Bigbank AS is a testament to aligning with a bank that combines experience and stability. Their consistent growth and strategic positioning make them an appealing option for investors looking to diversify their portfolios with AT1 bonds. Investors can have confidence in the bank’s sound financial practices and market understanding.
Contact Information
For inquiries regarding the AT1 bonds, interested parties can reach Argo Kiltsmann, a member of the Management Board. He can be contacted via telephone at +372 53 930 833 or through email at Argo.Kiltsmann@bigbank.ee. The official website, which provides further insights, is www.bigbank.ee.
Frequently Asked Questions
What are Additional Tier 1 bonds?
AT1 bonds are perpetual unsecured debt instruments that offer higher yields and are primarily targeted at institutional investors.
What is the interest rate on Bigbank AS AT1 bonds?
These bonds come with a competitive annual interest rate of 9%, payable quarterly.
Who can invest in these bonds?
This offering is exclusively targeted at selected investors, excluding the general public.
How long is the subscription period?
The subscription for the AT1 bonds is open from March 13 until March 18.
What is Bigbank AS's financial standing?
As of now, Bigbank AS has total assets of €2.9 billion and equity of €275 million, holding a strong position in the banking sector.
