Coop Bank, which is actively expanding its operations in Estonia, issued 5 million euros’ worth of bonds to LHV Pension Funds for a term of 3 years to support the company’s growth strategy.
According to the CEO of Coop Bank Margus Rink, the bank will continue with its growth strategy this year, which means that additional financing needs to be raised. “First of all, we want to finance ourselves with Estonian deposits, but since local deposits alone are not enough to implement the bank’s plans, we’ve had to receive deposits from Germany and Austria as well.” explained Rink. “We decided to issue 5 million euros’ worth of bonds to LHV Pension Funds as a new source of financing that will helps us continue growing.” According to the head of Coop Bank, this shows that LHV Pension Funds regard Coop Bank as an attractive investment opportunity.
Last December, LHV Pension Funds also invested 5 million in the bank’s subordinated bonds for a term of 10 years.
Coop Bank is a bank based on Estonian capital, which uses the synergy between retail and baking, and brings everyday banking close to people’s homes. Coop Eesti, which consists of 19 cooperatives, has 80,000 private owners and ca 600,000 loyal customers. Coop Bank has 15 branches and 23 banking points nationwide.
The net profit of Coop Bank in 2017 was 4.5 million euros and its loan portfolio increased by 56% and deposit portfolio by 24% in 2017.