LHV Group — Capital/Financing Update 2025

Apr 25, 2025

Notice of Issuance of LHV Group's New Tier 1 Subordinated Bonds and Early Redemption of existing AT1 Subordinated Bonds (including the record date and redemption date)

Notice of Issuance of LHV Group's New Tier 1 Subordinated Bonds and Early Redemption of existing AT1 Subordinated Bonds (including the record date and redemption date)

Yesterday, on 24.04.2025 AS LHV Group carried out an issue of Tier 1
subordinated unsecured bonds on international markets in the total volume of
50,000,000 euros (hereinafter: Bonds). The value date of the issued Bonds is
30.04.2025.

The Bonds will be in bearer form and in denominations of EUR 200,000 and
integral multiples of EUR 1,000 in excess thereof up to and including EUR
399,000. The Bonds are without defined maturity date (perpetual), and with first
call date on 30.04.2030. The Bonds carry coupon rate 9.5% per annum and will be
issued at 100% of nominal.

LHV Group will apply to the regulator to include them in additional Tier 1
capital. European investment funds and other qualifying investors participated
in the subscription of the issue, whereas British investors subscribed for
almost half of the issue and the share of Baltic investors was around 38% of the
total volume.

At the same, LHV Group announces its decision to prematurely redeem the
subordinated bonds issued on 26.05.2020, registered with ISIN code EE3300001668
(hereinafter: AT1 Bonds). The early redemption of the AT1 Bonds will be carried
out in accordance with the terms and conditions of the AT1 Bonds, which permit
full or partial early redemption after 26.05.2025, provided that investors are
notified at least 30 days in advance and with the prior consent of the financial
supervisory authority. The European Central Bank has granted its consent for the
early redemption of the AT1 Bonds on 14.03.2025.

All 150 AT1 Bonds, each with a nominal value of 100,000 euros, totalling
15,000,000 euros, will be redeemed early. Bondholders will receive the nominal
value of the respective bonds along with accrued and unpaid interest up to the
redemption date. The amount payable to the investor for one bond shall be EUR
102,375. The redemption date of the AT1 Bonds is 26.05.2025, and the list of
bondholders will be recorded on 25.05.2025, at the end of the working day of the
Nasdaq CSD settlement system.

LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's key subsidiaries are LHV Pank, LHV Varahaldus, LHV
Kindlustus, and LHV Bank Limited. The Group employs over 1,160 people. As at the
end of March, LHV's banking services are being used by 465,000 clients, the
pension funds managed by LHV have 113,000 active customers, and LHV Kindlustus
is protecting a total of 174,000 clients. LHV Bank Limited, a subsidiary of the
Group, holds a banking licence in the United Kingdom and provides banking
services to international financial technology companies, as well as loans to
small and medium-sized enterprises.

Priit Rum
Communications Manager
Phone: +372 502 0786
Email: [email protected]
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