Hipotēku banka issued mortgage bonds


On April 8, Hipoteku banka has approved amendments to the Base Prospectus of
Initial Offering Program of Mortgage Bonds of 15 February 2008, and submitted
them to the Financial and Capital Market Commission for approval. The total
amount of mortgage bonds under this program constitutes 150 million lats or its
equivalent in euros or US dollars. The bank has decided to issue mortgage bonds
in the amount of 20 to 30 million lats. The final conditions of the issue are
currently being developed. 
Funds attracted as a result of the issue shall be used to finance the primary
services of the bank as well as to improve the term structure of assets and
liabilities. 
Mortgage bank is the only Government-owned bank in the Baltic States. Safety
and stability of the Bank is characterized by ratings assigned by the credit
rating agency Moody's Investor Service: long-term obligations rating is A2,
rating to its issued mortgage bonds - A1. The long-term obligations rating for
Latvian Government is A2, thus the Bank is awarded the highest feasible rating
evaluation in Latvia.