On Friday, 8 December 2023, the public offering of subordinated bonds of AS Inbank (hereinafter Inbank) ended. 2893 investors participated in the issue, subscribing to subordinated bonds for a total of 45.7 million euros. This means the initial issue volume was oversubscribed 7.6 times.
As the initial issue volume of 6 million euros was oversubscribed, Inbank used its right to increase the issue volume to 8 million euros.
The Management Board of Inbank decided to allocate the subordinated bonds based on the following principles:
- All subscription orders of the same subscriber were summed up;
- All subscription orders in the amount of 1,000 euros were accepted in full;
- All subscription orders above 1,000,000 euros were reduced to 1,000,000 euros;
- Investors were allocated 13.36% of the amount exceeding the 1,000 euro threshold;
- The number of bonds with decimal places was rounded to the nearest whole number.
Marko Varik, CFO and Member of the Management Board of Inbank, comments on the results:
"I’m really delighted to see such a high interest for Inbank’s subordinated bond issue. Total subscriptions close to 46 million euros, as well as almost three thousand investors subscribing, once again confirms that the confidence in Inbank's business model and growth plans is very strong. Happy to see more and more retail investors becoming acquainted with bond investments. Hopefully it will also have a positive impact for the liquidity in the secondary market.
Inbank uses the funds raised from investors to continue international growth and develop its financing platform. Subordinated bonds strengthen our capital structure and help implement Inbank's growth strategy.”
The offering was conducted based on the base prospectus of subordinated bonds program registered by the Estonian Financial Supervision and Resolution Authority (FSA) on 27 November 2023 and the final terms of the subordinated bonds approved by the Management Board of Inbank on 27 November 2023.
As a result of the issue, Inbank issued subordinated bonds with a nominal value of 1,000 euros and an interest rate of 9% per annum. The maturity date of the bonds is 10 years. Inbank has a premature redemption right after 5 years subject to permission from the Estonian Financial Supervision and Resolution Authority.
The bonds will be transferred to the investors’ securities accounts presumably on 13 December 2023 and will be admitted to trading on the Baltic Bond List of Nasdaq Tallinn Stock Exchange on or about 14 December 2023.
Inbank is a financial technology company with an EU banking license that connects merchants, consumers and financial institutions on its next generation embedded finance platform. Partnering with 5,400+ merchants, Inbank has 894,000+ active contracts and collects deposits across 8 European markets. Inbank bonds are listed on the Nasdaq Tallinn Stock Exchange.
Additional information:
Marko Varik
CFO
marko.varik@inbank.ee
+372 5690 0286
