Market announcement

Title

Outcome of Subscription to AS LHV Group Subordinated Bonds

Message

Public offering of AS LHV Group subordinated bonds ended yesterday, on 27
November. Since the initial issue volume of EUR 16 million was oversubscribed,
LHV used its right to increase the issue volume within the maximum permitted
volume, to EUR 20 million.

Altogether 1,664 investors participated in the issue, subscribing to
subordinated bonds for a total of EUR 51.147 million, that is, the initial issue
volume was oversubscribed 3.2 times. The subscription period started at 10.00 on
14 November and ended at 16.00 on 27 November.

The Supervisory Board of LHV Group decided to allocate the subordinated bonds so
that all subscriptions up to the threshold of EUR 10,000 were fulfilled and the
remaining bonds were allocated based on the following principles:

 1. LHV's previous investors, whose subscriptions exceeded the threshold, were
    allocated 40.00% of the amount exceeding the threshold;
 2. LHV's previous customers, whose subscriptions exceeded the threshold, were
    allocated 15.00% of the amount exceeding the threshold;
 3. New investors, whose subscriptions exceeded the threshold, were allocated
    7.65% of the amount exceeding the threshold;
 4. New non-customer professional investors, whose subscriptions exceeded the
    threshold, were allocated 3.00% of the amount exceeding the threshold.

All subscription orders of the same subscriber were summed up. The number of
bonds with decimal places was rounded to the previous whole number.

Out of the 1,664 subscribers 73% received bonds in the desired volume. 27% of
investors were allocated less bonds than they desired.

According to Madis Toomsalu, CEO of LHV Group, the results of subscription to
LHV subordinated bonds were as good as expected. "The volume of subscription was
the largest yet compared to our previous capital raising. Oversubscription of
the first offering within the EUR 45 million bond programme was 3.2 times, which
is why we decided to increase the issue volume to EUR 20 million, from EUR 16
million. The subscription was broad-based and close to 1,700 subscribers
participated in it. As regards the allocation of bonds, we wanted to see all
subscribers as our investors, however we preferred the existing securities'
owners and customers of LHV, nevertheless we also partially satisfied the
subscriptions of all other interested investors. All in all 68% of new bonds
went to existing investors, 22% went to our clients and 10% were allocated to
new investors," Madis Toomsalu commented.

LHV will use the subordinated capital raised from investors for expanding
business volumes of LHV Group within the own funds and if possible, for early
redemption of the existing bonds.

The offering is the first part of the previously accepted bond programme. Under
the programme, LHV intends to issue subordinated bonds worth up to EUR 45
million within several issues.

The first issue of LHV includes 10-year subordinated bonds with a nominal value
of EUR 1,000, annual interest rate of 6.0% and redemption date of 28 November
2028. The bonds will be transferred to the investors' securities accounts on 30
November 2018, will be listed and admitted to trading on the Baltic Bond List of
Nasdaq Tallinn Stock Exchange on 3 December 2018.

LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's key subsidiaries are LHV Pank and LHV Varahaldus. There are
380 people working at LHV and more than 156,000 clients are using its banking
services. Pension funds managed by LHV have more than 177,000 clients.



Priit Rum
Communication Manager
Phone: +372 502 0786
E-mail: [email protected]