07.03.2022
Investors exceeded the subscription for unsecured subordinated bonds of Coop Pank, which ended last week, by 1.7 times. The bank took the opportunity to increase the volume of the issue to 10 million euros.
Until March 3, investors were able to subscribe to 10-year unsecured subordinated bonds of Coop Pank with a fixed interest rate of 5.0% per annum. 553 investors participated in the subscription and submitted applications for a total of 13.9 million euros, thus exceeding the base issue volume of 8 million euros by 1.7 times. Coop Pank exercised its right to increase the issue to 10 million euros.
Margus Rink, chairman of the management board of Coop Pank, said that the 1.7-fold oversubscription at such a difficult time confirms that customers and investors believe in Coop Pank’s growth plan. “The bank’s investor base is expanding every year. Since the founding of Coop Pank in 2017, Coop has been the strategic owner of the bank. The initial public offering (IPO) in the fall of 2019 and the following two years attracted nearly 28,000 retail investors. We consider it important that our investor base also include institutional investors. Based on this, when distributing bonds this time, we give preference not only to existing customers, shareholders, and bondholders, but also to institutions. Therefore, we distributed two-thirds of the total issue among investors who subscribed to 100 or more bonds (worth EUR 100,000 or more). Thanks to the success of the issue, we have achieved the goal of strengthening the bank’s capital base, which will allow us to continue our rapid growth,” Rink thanked the investors who took part in the subscription.
This subscription was the second series of Coop Pank’s bond program announced in 2021. The offer of the first series of the bond program in the spring of 2021 was oversubscribed by more than 6 times, and as the result the bank raised 10 million euros.
Estonian-owned Coop Pank is one of the five universal banks operating in Estonia. The number of clients using Coop Pank for their daily banking is 117,600. Coop Pank aims to put the synergy generated by the interaction of retail business and banking to good use and to bring everyday banking services closer to people’s homes. The strategic shareholder of the bank is the domestic retail chain Coop Eesti comprising 330 stores.