Published: 2019-12-16 08:52:14 CET
Corporate Action

Outcome of AS Inbank Subordinated Bond Subscription

Inbank AS

Outcome of AS Inbank Subordinated Bond Subscription

The public offering of AS Inbank subordinated bonds ended on Friday, 13 December. As the initial issue volume of EUR 6,5 million was oversubscribed 5.8 times, Inbank used its right to increase the issue volume to the maximum permitted volume of EUR 8 million.

Altogether 1348 investors participated in the issue, subscribing to subordinated bonds for a total of EUR 38 million. This means that the initial issue volume was oversubscribed 5.8 times. 

The Supervisory Board of Inbank decided to allocate the subordinated bonds based on the following principles:

  • All subscription orders of the same subscriber were summed up;
  • The maximum subscription amount per investor is EUR 500,000;
  • All subscriptions up to the threshold of EUR 2,000 were fulfilled;
  • Inbank's shareholders were allocated 35% of their subscribed volume exceeding the EUR 2,000 threshold;
  • Inbank's bond investors and institutional investors were allocated 35% of their subscribed volume exceeding the EUR 2,000 threshold;
  • The remaining investors were allocated 8,63% of their subscription volume exceeding the EUR 2,000 threshold;
  • The number of bonds with decimal places was rounded down to the nearest whole number;
  • Of the 1348 subscribers, 26% received bonds at the desired volume, while 74% were allocated less bonds than they desired.

Priit Põldoja, Chairman of the Supervisory Board of Inbank, comments on the results:

“Investors' interest in Inbank bonds was higher than expected and this time the issue was oversubscribed almost 6 times. I am pleased that this time nearly twice as many local retail investors and most local funds subscribed for the bonds, which demonstrates a great deal of confidence in Inbank and our innovative business model.

When allocating the bonds, we aimed to give all subscribers the opportunity to invest in Inbank. Because the oversubscription was very large, we had to make difficult choices. However, as promised, we prioritized existing shareholders, bond investors and institutional investors first, and then partially fulfilled the new investors' subscriptions.

In doing so, we have met our goal of diversifying our investor base and enabling local retail investors to share in Inbank's international growth.”

Inbank will use the raised subordinated capital as part of its own funds for international growth and to strengthen its capital structure.

Inbank issued 6,500 subordinated bonds with the nominal value of EUR 1,000, interest rate offered of 6.0% per annum and maturity date of 19 December 2029. The bonds will be transferred to investors’ securities accounts on 19 December 2019. The bonds are expected to be listed and admitted to trading on the Baltic Bond List of the Nasdaq Tallinn Stock Exchange granted on or about 20 December 2019.

Inbank is a consumer finance focused digital bank active in the Baltics and Poland with additional deposits accepted in Germany, Austria and the Netherlands. Inbank has over 1,750 active partners and 550,000 active contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.

Additional information:

Kärri Brewster-Palts
Inbank AS
Head of Group Marketing
+372 5565 5500