“Hipoteku banka” has Successfully Distributed Mortgage Bonds of AS “PARITATE BANKA”

On Tuesday, 15 May, offer of AS “PARITATE BANKA” mortgage bonds to investors,
which was organised by “Hipoteku banka”, has finished. The bonds issue volume
amounted to EUR 9,000,000, with the maturity term of 3 years and the interest
rate worth 6-month Libor + 1,55%. Mortgage bonds were offered at their nominal
value. 

Rolands Panko, Deputy Chairman of the Board of “Hipoteku banka”, has stressed
that “this deal is another proof to the successful experience of “Hipoteku
banka” in issuance of bonds. The largest Latvian issue of mortgage bonds
executed by a private bank has been finalised in collaboration with AS
“PARITATE BANKA”. Participation of new foreign investors contributed
dramatically to the success of this issue.” 

AS “PARITATE BANKA” has expressed it satisfaction with the fact that not only
Baltic but also Western investors from top-level banks appreciated the rapidly
growing potential of the bank and purchased securities of the third mortgage
bonds issue. 
Key competitive advantages of AS “PARITATE BANKA” include a flexible approach
to the Clients' needs, a competitive price policy, possibilities of long-term
lending, mutually beneficial cooperation with foreign companies, which is made
possible thanks to collaboration with such major banks as “PrivatBank”
(Ukraine), “PrivatBank” (Cyprus) and “Moskomprivatbank” (Russia), as well as
with AS “PARITATE BANKA” branch in Portugal and its representative office in
Italy. During the last three years AS “PARITATE BANKA” has opened 23 branches,
settlement groups and customers service centres nationwide. 

“Hipoteku banka” is one of the most experienced banks and uses mortgage bonds
issues to raise funds for facilitating mortgage lending. “Hipoteku banka” is
the major issuer of mortgage bonds in Latvia. As of May 2007, there have been
10 mortgage bonds issue in the turnover with the total value exceeding LVL 40.4
million. Besides, “Hipoteku banka” actively cooperates with other banks in
organising bonds issues. This is the second mortgage bonds issue distributed
with the help of “Hipoteku banka” in 2007. 

“Hipoteku banka” is the only state-owned bank in the Baltic States that
functions as both a commercial and a development bank.