Šiaulių bankas AB is going to issue bonds in value of EUR 45 million. Received money is going to be used to credit small and medium-sized businesses
On May 19, 2006, Securities Commission of Lithuania after considering the bond programme submitted by Šiaulių Bankas AB approved the base prospectus of this programme.
According to this programme the bank projects to issue debt securities of EUR 45 million in value. A number of issues, amounts and issue dates are not established, the Bank is going to issue bonds at the right time with favorable market conditions. It is planned to issue bonds with not less than one-year term.
Šiaulių bankas has already not publicly disseminated the first bond issue under this programme in value of EUR 10 million for two-year period to the institutional investors of the Baltic countries. These 4.6% annual profitability bonds are planned to be listed in Vilnius Stock Echange where investors would have an opportunity to purchase them at market price. To prepare this programme and to disseminate this issue the bank has invoked the investment bank Lohmus, HaavelViisemann (LHV).
This is the second bond issue issued by the Bank. The first one-year bond issue of LTL 20 million in value the Bank is going to redeem on July 19th this year. It is planned to issue a new one-year bond issue at the same time.
“The bond issue programme is a substantial step towards the long –term recourse raising policy which is projected in the Bank’s Building Plan. It became possible to take this step only due to the partnership with the European Bank for Reconstruction and Development; after the EBRD became a shareholder of Šiaulių bankas in summer last year foreign financial institutions granted LTL 78 million of credit lines” – the Chairman of Bank’s Board Algirdas Butkus states the positive changes.
The major part of recourses raised from various sources the Bank employs to finance small and medium-sized businesses. The significant increase of these recourses will enable the Bank to develop SME financing programmes rapidly.
During the last and a half year, the Bank has increased its authorized capital by 68 per cent up to LTL 94 million, the Bank’s assets have increased by 11 per cent during 4month period of 2006 and reached LTL 1.149 billions, while loan portfolio has increased by 16 per cent – up to LTL 766 million during 4month period of 2006.