LHV Group's Early Redemption of Subordinated Bonds
LHV Group has made a significant announcement regarding the early redemption of its subordinated bonds. These bonds, officially known as LHV Group 2030 Subordinated Bonds, were originally issued on 30 September 2020 and are identified by the ISIN code EE3300001791. The decision to redeem them early reflects LHV Group's strategic financial management and commitment to its investors.
Details of the Early Redemption
The early redemption will be conducted in alignment with the terms set forth in the Prospectus associated with the LHV Group 2030 Subordinated Bonds. According to these terms, bonds may be redeemed before their maturity date of 30 September 2025, given that all investors receive a minimum of 30 days' notice and the approval from the financial supervision authority is secured beforehand.
On 11 August 2025, the European Central Bank approved LHV Group's request for early redemption. This consent allows the company to proceed with redeeming all 35,000 bonds, each with a nominal value of EUR 1,000, totaling an impressive EUR 35,000,000. This early redemption is a pivotal moment for investors, providing certainty in their investment returns.
Reimbursement Details for Investors
For each bond, holders will be reimbursed their nominal value along with any accrued and unpaid interest up to the redemption date. Consequently, each investor can expect a total payment of EUR 1,015. The scheduled payment date for this transaction is 30 September 2025, ensuring that all financial operations are completed smoothly.
Understanding LHV Group's Structure
As one of Estonia's largest financial groups, LHV Group is a key player in the domestic financial landscape. The group consists of several significant subsidiaries, including LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. Collectively, these entities employ over 1,100 people, making substantial contributions to the local economy.
Customer Reach and Services
As of the end of July, LHV Pank serves approximately 476,000 customers, while its pension funds cater to 109,000 active participants. Additionally, LHV Kindlustus provides comprehensive protection to around 177,000 customers, showcasing the group's extensive market penetration and trusted service offerings.
International Banking Operations
LHV Bank Limited, a subsidiary authorized to operate as a banking institution in the United Kingdom, plays a crucial role in providing services to international fintech companies and supporting small to medium-sized enterprises through various loan offerings. This international approach highlights LHV Group's adaptability and desire to maintain a competitive edge in a rapidly evolving financial landscape.
Contact Information for Investors
For further inquiries or insights about this early redemption or other investor-related topics, interested parties can reach out directly to LHV Group's Investor Relations. Sten Hans Jakobsoo, who serves as the Head of Investor Relations and Corporate Development, is ready to address any questions you may have. You can contact him via email at stenhans.jakobsoo@lhv.ee.
Meanwhile, communications insights can be sought from Paul Pihlak, the Head of Communications. He is available for comment or questions at paul.pihlak@lhv.ee, providing a direct line to those looking to understand more about LHV Group's strategies and operations.
Frequently Asked Questions
What are the terms for early redemption of the bonds?
The bonds can be redeemed early after 30 September 2025, with prior notice and consent from the financial supervision authority.
What is the nominal value of the LHV Group 2030 Subordinated Bonds?
Each bond has a nominal value of EUR 1,000, contributing to a total of EUR 35 million for the entire bond issue.
When will the bondholders receive their payments?
Payments are scheduled to be processed on 30 September 2025, which ensures all financial obligations are met in a timely manner.
How many bonds is LHV Group redeeming?
LHV Group will redeem all 35,000 of its subordinated bonds as part of this early redemption initiative.
Who can be contacted for more information regarding this announcement?
Investors can reach out to Sten Hans Jakobsoo or Paul Pihlak via their provided email addresses for detailed queries.
