This type of deposit has a number of features that allow receiving a higher return, on one hand, but set some significant limitations in relation to early deposit withdrawals. Minimum term of this deposit is 5 years. In addition, the subordinated loan entitles citizens of foreign countries to get a residence permit in Latvia.
In 2012, Rietumu Bank successfully issued a number of subordinated bonds with the following parameters:
Rietumu bonds are registered on the NASDAQ OMX Riga stock exchange and are in public trading. Investors may sell and buy these securities on the secondary market.
Rietumu bonds can be acquired by private individuals and legal entities. Acquisition of these securities allows for applying for a residence permit in Latvia for the investors and their family members.
Rietumu will inform its clients on new issues of bonds and terms and conditions of such issues. This information can also be received at the bank.