Today, on 29 October 2021 Inbank completed the subscription of AT1 bonds through private placement in the amount of 4.5 million euros. A total of 15 investors subscribed to AT1 bonds that are included in the Tier 1 capital.
According to Priit Põldoja, CEO and Chairman of the Management Board of Inbank, the issuance of AT1 bonds allows the bank to meet the capital requirements set by the regulator without impacting return on equity earned by shareholders. "The money raised will diversify Inbank's capital structure and support our rapid international growth," said Põldoja.
As AT1 bonds have a higher risk level than that of ordinary subordinated bonds, the annual interest rate is 7.5% and interest payments are made quarterly. The issued bonds are perpetual, however, Inbank has the right to call the bonds from the investors after five years from the issuing.
Inbank is a consumer finance focused digital bank active in the Baltics, Poland, and the Czech Republic with additional deposits accepted in Germany, Austria, the Netherlands, and Finland. Inbank has over 4,500 active partners and 743,000 active contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.
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