Börsiteade

Pealkiri

Outcome of Subscription to AS LHV Group Subordinated Bonds

Teade

The public offering of AS LHV Group subordinated bonds ended on Friday, 21 June.
As the initial issue volume of EUR 15 million was oversubscribed, LHV used its
right to increase the issue volume to the maximum permitted volume of EUR 20
million.

Altogether 1,913 investors participated in the issue, subscribing to
subordinated bonds for a total of EUR 77.896 million. This means that the
initial issue volume was oversubscribed 5.2 times. The subscription period
started at 10.00 on 5 June and ended at 16.00 on 21 June.

The Supervisory Board of LHV Group decided to allocate the subordinated bonds
based on the following principles:

 1. All subscription orders of the same subscriber were summed up;
 2. All subscriptions up to the threshold of EUR 5,000 were fulfilled;
 3. LHV's previous investors, whose subscriptions exceeded the threshold, were
    allocated 30.00% of the amount exceeding the EUR 5,000 threshold;
 4. LHV's previous customers, whose subscriptions exceeded the threshold, were
    allocated 11.00% of the amount exceeding the EUR 5,000 threshold;
 5. New investors, whose subscriptions exceeded the threshold, were allocated
    4.34% of the amount exceeding the EUR 5,000 threshold;
 6. New non-customer professional investors were allocated 7.00% of the
    subscribed amount.
 7. The number of bonds with decimal places was rounded to the previous whole
    number.
 8. The remaining bond was allocated randomly between all subscribers.

Out of the 1,913 subscribers 48% received bonds in the desired volume. 52% of
investors were allocated less bonds than they desired.

"The volume of subscription was the largest yet compared to our previous capital
raising. Oversubscription of the second offering within the ongoing EUR 45
million bond programme was 5.2 times, which is why we decided to increase the
issue volume from EUR 15 million to EUR 20 million. The subscription was broad-
based and 1,913 subscribers participated. 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," Madis Toomsalu,
CEO of LHV Group commented.

LHV will use the subordinated capital raised from investors for expanding
business volumes of LHV Group within the own funds. As LHV Pank is acquiring the
unit of Danske Bank involved with the loan portfolio of Estonian private
clients, AS LHV Group needs additional capital, which the group will use to
increase the capital of its subsidiary LHV Pank.

The offering is the second part of the previously accepted bond programme. The
first issue under the programme was carried out in November 2018.

The second 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
presumably on 27 June 2019, will be listed and admitted to trading on the Baltic
Bond List of Nasdaq Tallinn Stock Exchange on or about 27 June 2019.

LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's key subsidiaries are LHV Pank and LHV Varahaldus. LHV
employs over 400 people, and 177,000 customers use LHV's banking services.
Pension funds managed by LHV have 177,000 active clients.


Priit Rum
LHV Communication Manager
Phone: +372 502 0786
Email: [email protected] (mailto:[email protected])