LHV Group — Capital/Financing Update 2021

Sep 2, 2021

Company Type Category Disclosure time AS LHV Group Company Release New loan issues 02 Sep 2021 08:00:00 +0300

Currency

LHV Group issues EUR 100 million of senior unsecured bonds Title

AS LHV Group completed an issue of 100 million euros of senior unsecured, unsubordinated bonds. The bonds were issued with four years maturity, with issuer's optional redemption date after three years. The bonds were mainly issued in order to comply with regulatory MREL requirements.

The senior unsecured bonds were offered to institutional investors. In total 28 investors participated in the offering and the issue was 1.4 times oversubscribed. Out of total order book 48% was received from Nordic and Baltic investors, 16% from Spain, 14% from Germany, 14% from the UK and 9% from other European countries. The bonds were issued at a spread of 140 basis points over the mid-swap rate. Total re-offer yield of the bonds was 0.967%. The coupon rate of the bonds payable to investors is 0.875%.

"The issue of the bonds today is the first time that AS LHV Group has tapped international capital markets. The goal of the issue was mainly to comply with regulatory requirements, which prescribe that part of the group's funding structure should be composed of other eligible liabilities, in addition to deposits. We have decided to target a wider range of international investors with the offering. Taking into consideration the growth of LHV's business that we have seen, we need to approach international markets for funding," commented Kadri Haldre, Head of Treasury of LHV.

The bonds are expected to be listed on Euronext Dublin. LHV Group's issuer rating from Moody's is Baa3 with a positive outlook. The bonds are expected to be rated Baa3. LHV Pank's deposits rating from Moody's is Baa1 with a positive outlook.

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. LHV employs over 620 people. LHV's banking services are used by 290,000 clients, the pension funds managed by LHV have 174,000 active clients, and LHV Kindlustus protects a total of 132,000 clients. LHV's UK branch offers banking infrastructure to 160 international financial services companies, via

Finantsinspektsioon http://www.fi.ee

which LHV's payment services reach clients around the world.

Priit Rum LHV Communication Manager Phone: +372 502 0786 Email: priit.rum@lhv.ee (mailto:priit.rum@lhv.ee)

Finantsinspektsioon http://www.fi.ee