On August 19, 2026, AS LHV Group issued EUR 200 million worth of senior unsecured bonds. The bonds have a maturity of 4 years, and the issuer has the option to redeem the bonds one year prior to maturity.
The unsecured bonds were sold primarily to institutional investors in the United Kingdom and the Baltic states, though investors from Central and Eastern Europe, Scandinavia, and other countries also participated in the issue. The bonds were allocated to asset managers, banks, pension funds, and supranational investors.
The bonds were issued with a yield of 4.57%, representing a spread of 150 basis points over the reference rate. The bonds will mature on August 26, 2030, and the issuer holds the right to redeem the bonds early one year prior to maturity. The issued bonds are eligible liabilities under the MREL (Minimum Requirement for Own Funds and Eligible Liabilities) regulations.
‘LHV Group last issued unsecured bonds about a year ago. Despite very strong post-summer supply in international bond markets, LHV’s issuance generated high interest among investors – with subscriptions exceeding EUR 450 million, representing a 2.25-fold oversubscription. The transaction spread of 150 basis points over the reference rate is the lowest LHV has ever paid for a similar issuance. This indicates that LHV, as a regular issuer, is well received in international bond markets. Investors appreciate our simple balance sheet structure, high liquidity levels, and capital buffers. The Group’s Baa2 rating with a positive outlook confirms this narrative. The issuance supports the growth of LHV's assets in both Estonia and the UK,’ commented Juhan Peet, Head of Treasury and LHV Markets at LHV Group.
The bonds will be listed on the Euronext Dublin Stock Exchange. AS LHV Group's long-term issuer credit rating is Baa2 with a positive outlook (Moody’s). The expected rating for the bonds is also Baa2. LHV Pank's deposit credit rating is A3 with a positive outlook (Moody’s).
The joint lead managers of the transaction were LHV and ERSTE Group Bank AG.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s main subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus and LHV Bank Limited. The Group employs nearly 1,200 people. LHV’s banking services are used by more than 510,000 customers, LHV-managed II pillar pension funds have over 104,000 active customers and LHV Kindlustus provides insurance protection to 244,000 customers. LHV Bank, a subsidiary of LHV Group, holds a UK banking licence and offers banking services to international financial technology companies, loans to small and medium-sized enterprises and retail banking services.
Investor Relations
Sten Hans Jakobsoo
Head of Investor Relations and Corporate Development
Email: stenhans.jakobsoo@lhv.ee
Communications
Paul Pihlak
Head of Communications
Email: paul.pihlak@lhv.ee
