Luminor issues €200m subordinated bond
Luminor, a leading Baltic bank, has successfully issued a €200 million subordinated bond. The 11-year bond was launched on October 15, 2024, following strong demand from European investors. The issue was quickly oversubscribed, signalling confidence in both the bank and the region’s financial stability.
The bond was officially launched on October 7, 2024, with the final settlement completed a week later. Investors from the UK showed the highest interest, while German-speaking countries, France, and the Netherlands also contributed significant demand. Although the documents mention multiple financial institutions, no single bank was identified as the sole distributor across these regions.
The bond carries a Baa3 rating from Moody’s and includes a call option during a three-month window ending five years before maturity. It is now listed on the Global Exchange Market of Euronext Dublin. Johannes Proksch, Luminor’s Chief Financial Officer, welcomed the strong response. He described the issue as the bank’s first Tier 2 capital security, designed to extend its liability structure and improve capital efficiency. The successful placement also helps Luminor expand its investor base.
The oversubscription of Luminor’s bond reflects investor trust in the Baltic economies and the bank’s financial health. The €200 million raised will support the bank’s long-term strategy by strengthening its capital position. The bond’s listing on Euronext Dublin further broadens its accessibility to international markets.
