JSC Akciju komercbanka Baltikums successfully placed the first credit linked notes issue in Latvia

JSC “Akciju komercbanka” Baltikums”” (hereinafter - the Bank) successfully
placed the credit linked notes (debt securities (notes) linked) to a loan to
the customer with the following terms: 
1.total amount of the issue - up to LVL 500 000.00 (five hundred thousand lats)
(EUR 711 435.91*); 
2. max maturity  - 2 years; 
3. coupon rate - floating (3M Rigibor + 2%).
On September 7, 2007 JSC “Akciju komercbanka “Baltikums”” set the coupon rate
for the first  coupon period (from September 7, 2007 till September 30, 2007)
on its credit linked notes (debt securities (notes) linked) at 11.49% p.a. JSC
“Akciju komercbanka “Baltikums”” credit linked notes code is ISIN LV0000800530.
According to the terms of the issue, the coupon rate is set for each interest
calculation period. The coupon rate is based on 3 (three) month RIGIBOR rate,
which is fixed on the coupon rate determination date, plus 2% p.a. According to
Bank of Latvia, 3 month RIGIBOR rate on 7 September 2007 was 9.49% p.a. 

The purpose of the issue is attracting of funds and onlending of the attracted
funds to a borrower with credit risk passing to the buyers of the notes.
According to the terms of the issue, the buyers of the notes will not take
credit risk of the issuer but will take all the risks resulting from the loan
agreement between the issuer and the borrower. 

The Notes were offered only to qualified investors or investors who will
subscribe to the Notes in the amount of no less than EUR 50 000. 

It is not planned to list the Notes on the debt securities list of the Rigs
Stock Exchange. 

The arranger of the issue is JSC “Parex banka”. 

*The fixed exchange rate of the Bank of Latvia is 1 EUR=0.702804 LVL.