Rietumu Bank Issues New Bonds with Rates of up to 2.25% p.a.
16-Oct-2015 / Products & Services Rietumu Bank starts a programme of placing new issues of corporate bonds intended primarily for the bank’s clients.
In the course of the first issue, bonds in EUR and USD will be issued with a maturity period of two years and the fixed rate of return as 2% and 2.25% p.a. respectively.
The nominal value of one bond issued in euro will be EUR 50 000, and in US dollars – USD 75 000. The interest will be paid to investors twice a year.
Rietumu Bank’s bonds will be listed on the NASDAQ OMX Riga.
According to the Member of the Board of Rietumu Bank, Rolf Fuls, “The issued bonds will become an attractive alternative to classical deposits. They will excellently suit the clients who prefer low-risk investments. It is a very attractive instrument from all the aspects: in the current situation of extremely low interest rates globally, placement of funds in such securities allows receiving more than a satisfactory return, which considerably exceeds the term deposit rates.”
If required, holders of Rietumu Bank’s bonds will be able to receive financing in the bank as the collateral using such securities – up to 90% of their current market value.
Public offering of the first issue of Rietumu Bank’s bonds will be open on 22 October 2015, and will last until 26 November 2015; the official issue date of the bonds will be 10 December 2015.
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