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Coop Pank issues subordinated bonds worth 8 million euros

On Tuesday, February 22, 2022, Coop Pank announced a public offering of subordinated bonds – it wishes to raise 8 million euros to increase the bank's capital and finance business growth.

Until March 3, investors will be able to subscribe to 10-year unsecured subordinated bonds of Coop Pank with a fixed interest rate of 5.0% per annum. In total, up to 8,000 bonds with a nominal value of 1,000 euros will be offered – the total volume of the offer will be 8 million euros. In the event of an oversubscription, Coop Pank has the right to increase the volume of the issue by 2,000 bonds or by 2 million euros.

Margus Rink, chairman of the management board of Coop Pank, said that the raised funds will be used to finance the growth of the bank: “For the fifth year in a row, we have been increasing business volumes by more than 40%, and last year the number of our customers exceeded 100,000. Our presence in the Estonian economic space, in the banking sector and in the daily life of people is constantly growing. To sustain rapid growth, we need additional capital. So far, we have covered the capital needs arising from the bank’s growth through profits generated in previous years, subordinated bonds issued in 2017 and 2019, as well as additional share issue and the initial public offering (IPO) in 2019. The offer of the first series of the bond program, announced in 2021, was oversubscribed by more than 6 times, and as the result we raised 10 million euros. The volume of today’s offer of the second series is 8 million euros. We will use the funds raised to increase the bank’s market share.”

The subscription period for the bonds will begin on February 22, 2022 at 10:00 and end on March 3, 2022 at 16:00. The offer is intended for retail and professional investors in Estonia. Detailed information about the offer can be found in the issue prospectus available on the Coop Pank website at www.cooppank.ee/en/pakkumine

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