Inbank's Successful Subordinated Bond Subscription
Recently, Inbank wrapped up its public offering of subordinated bonds, marking a significant moment in the company's financial journey. The event attracted considerable attention, with an impressive 935 investors participating, ultimately subscribing to bonds worth a total of 21.6 million euros. This enthusiasm resulted in the initial issue volume being oversubscribed by a staggering 4.3 times.
Oversubscription and Increased Issue Volume
The original target for the issuance was set at 5 million euros. However, due to high demand, Inbank exercised its option to expand the issuance up to 8 million euros, a decision that showcases the trust and confidence investors have in the company.
Allocation Principles for Investors
The Management Board of Inbank outlined a clear framework for how the subordinated bonds would be allocated among investors:
- All subscription orders from individual subscribers were combined to compute totals.
- Orders exceeding 1,500,000 euros were capped at that level.
- Requests of 2,000 euros were completely fulfilled.
- 62% of the surplus above 2,000 euros was allocated to Inbank employees, shareholders, and institutional asset managers.
- For other investors, 31.24% of amounts over 2,000 euros were allocated.
- Rounding principles were applied to ensure whole bonds were allocated.
CEO's Statement on Investor Interest
Priit Põldoja, CEO of Inbank, expressed his gratitude to investors for their confidence in the company. He stated, “I am pleased to see such strong interest in Inbank’s subordinated bond issuance and would like to thank all investors for their trust in Inbank and our growth strategy.” He emphasized that the new bonds will fortify Inbank’s capital and aid in the execution of its business strategy, which includes international expansion and investment in innovative technologies.
Bond Details and Trading
Through this bond issuance, Inbank has released subordinated bonds with a nominal value of 1,000 euros and a competitive interest rate of 6.25% per annum. The bonds are set to mature in 10 years, with an option for early redemption after 5 years, dependent on approval from the Estonian Financial Supervision and Resolution Authority.
Investors can expect their bonds to be credited to their securities accounts on a date targeted for 9 October, with trading on the Baltic Bond List of the Nasdaq Tallinn Stock Exchange expected to commence shortly after, around 10 October.
About Inbank
Inbank is an innovative financial technology company proudly operating with an EU banking license. They specialize in linking merchants, consumers, and financial institutions through their state-of-the-art embedded finance platform. Inbank currently partners with over 5,700 merchants and has more than 931,000 active contracts, collecting deposits across seven markets within Europe. Importantly, the bonds offered by Inbank are recognized on the Nasdaq Tallinn Stock Exchange.
Contact Information
For further inquiries, investors can reach out to Styv Solovjov, the Head of Investor Relations at Inbank, at +372 5645 9738, or through the provided email.
Frequently Asked Questions
1. What was the total amount raised from Inbank's bond offering?
Inbank raised a total of 21.6 million euros through its subordinated bond offering.
2. How many investors participated in this bond issuance?
A total of 935 investors took part in the bond issuance.
3. What was the nominal value and interest rate of the bonds?
The bonds have a nominal value of 1,000 euros and an interest rate of 6.25% per annum.
4. When will the bonds begin trading?
The bonds are expected to be listed for trading on 10 October.
5. What is Inbank's strategy moving forward?
Inbank aims to strengthen its capital base and continue international growth while investing in innovative technologies and new products.
