Outcome of Subscription to Coop Pank Unsecured Subordinated Bonds

The public offering of Coop Pank AS (hereinafter Coop Pank) unsecured subordinated bonds ended on Friday, 26 March. As the initial issue volume of EUR 8 million was oversubscribed,

Altogether 2013 investors participated in the issue, subscribing to subordinated bonds for a total of EUR 49,6 million. This means that the initial issue volume was oversubscribed 6,2 times. The subscription period started at 10.00 on 16 March 2021 and ended at 16.00 on 26 March 2021.

Coop Pank used its right to increase the issue volume to the maximum permitted volume of EUR 10 million.

The Management Board of Coop Pank decided to allocate the subordinated bonds based on the following principles:

1. All subscription orders of the same subscriber were summed up.

2. The maximum subscription amount considered in allocation per investor is EUR 300 000.

3. All subscriptions up to the threshold of EUR 2 000 were fulfilled.

4. Coop Pank’s shareholders and customers were allocated 32,9% of the amount exceeding the EUR 2 000 threshold.

5. The remaining investors were allocated 9,5% of the amount exceeding the EUR 2 000 threshold.

6. The number of bonds with decimal places was rounded to the previous whole number.

"The great interest in the first series of Coop Pank's bond program confirms investors' trust and confidence in the bank's growth plans. The high activity of retail investors in subscribing to bank bonds is particularly gratifying. We decided to give preference to today's customers and shareholders of the bank, to whom we distributed two thirds of the total volume of bonds. Offering the opportunity to be the owner of the bank itself or from now on also a bond investor, we want to give customers an additional argument to prefer the domestic Coop Pank when choosing the bank,” commented Margus Rink, Chairman of the Management Board of Coop Pank.

The offering was conducted based on the base prospectus of subordinated bonds program registered by the Estonian Financial Supervision Authority on 15 March 2021 and the terms and conditions of the subordinated bonds approved by the Management Board of Coop Pank on 10 March 2021.

As a result of the issue Coop Pank issued subordinated bonds with a nominal value of 1,000 euros, an interest rate of 5,5% per annum and a maturity date of 31 March 2031. The bonds will be transferred to the investors’ securities accounts presumably on 30 March 2021 and will be admitted to trading on the Baltic Bond List of Nasdaq Tallinn Stock Exchange on or about 1 April 2021.

Based on Estonian´s capital, Coop Pank is one in five universal banks operating in Estonia. Coop Pank’s banking services are used by more than 90,900 clients. Coop Pank AS uses the synergies between retail and banking and brings everyday banking services closer to home. The strategic owner of the bank is the domestic retail chain Coop Eesti, whose sales network includes 330 stores.

Additional information:
Kerli Lõhmus
CFO
Phone: +372 56 800 425
e-mail: kerli.lohmus@cooppank.ee
www.cooppank.ee