The financial brokerage firm Evernord has made a private placement of EUR 2 million of subordinated bonds with a maturity of 10 years from the Lithuanian specialised Fjord Bank. The issuer took this step in order to support the growth of its loan portfolio and the related regulatory capital requirements.
The Fjord Bank bonds issued have an annualised yield of 14 %. The bonds mature on 28 February 2034 and will pay interest to investors quarterly.
“This joint project between Evernord and Fjord Bank was in line with investors’ expectation to capture higher returns over a longer period. It was a great opportunity for investors to further diversify their portfolios, and we received a lot of attention. Fjord Bank’s clear business strategy, strong and consistent steps towards its strategic goals allowed us to establish a partnership based on mutual trust,” notes Vismantė Šepetienė, Director of Evernord FMI.
“Fjord Bank is currently growing its loan portfolio at a rapid pace, and to support this growth and the associated regulatory capital requirements, we have decided to issue subordinated bonds. Equally important was the aim to issue bonds for the first time in the domestic market – Lithuania. After discussing the possibilities of cooperation with the Evernord team, the whole process started to run quickly, smoothly and professionally, and resulted in a positive outcome for Fjord Bank, as the full amount was raised as planned. We are grateful to the Evernord team and the investors for their trust and support”, says Veiko Kandla, CEO of Fjord Bank.
“Fjord Bank” is a specialised fully digital consumer finance bank licensed by the European Central Bank and supervised by the Bank of Lithuania. The bank launched its digital consumer finance and time deposit products in 2021 and today offers its services in 5 countries – Lithuania, Estonia, Germany, Spain and the Netherlands. The bank is headquartered in Vilnius and is majority owned by a group of investors of Norwegian origin.