Luminor senior bonds (EBRD-50023)

Regions
  • Europe and Central Asia
Where the impacts of the investment may be experienced.
Countries
  • Estonia
  • Latvia
  • Lithuania
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 23, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Luminor Bank AS
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 175.64 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 150
Converted using 2018-05-23 exchange rate.
Loan Amount (USD)
$ 175.64 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 409.83 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported EUR 350
Converted using 2018-05-23 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Mar 12, 2019

Disclosed by Bank Oct 18, 2018


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Project Description

According to EBRD website, the project aims to support the Issuer raise medium-term funding in the capital markets in order to diversify the funding sources and establish itself as a self-sustainable pan-Baltic financial institution. Further, it will support the resilience of the financial sector and markets by: 

(i) increasing the supply of investable listed instruments for local pension funds and other institutional investors

(ii) helping the diversification of the funding sources for the Issuer and decreasing the dependence on the parents and

(iii) supporting an orderly replacement of two Nordic banks, while mitigating the risk to stable and competitive financial intermediation in the Baltic countries.

Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Private Actors

The Issuer belongs to the Luminor Group. The Luminor Group currently comprises Luminor Group AB and its direct and indirect subsidiaries in Estonia, Latvia and Lithuania. Luminor Group AB, the holding company established in Sweden, has Nordea Bank Abp ("Nordea", Nordea Bank AB (publ) (Sweden) merged into Nordea Bank Abp (Finland) on 1 October 2018) and DNB Bank ASA ("DNB") as its main shareholders, based on an agreement to merge their Baltic operations in Estonia, Latvia and Lithuania. Luminor Group AB owns 100% of the shares of the Issuer, as well as of Luminor Latvia and Luminor Lithuania.

Luminor Group is the third largest financial services group on the Baltic market in terms of total assets and customer loans and deposits (according to the financial statements published by Baltic banks), providing retail, corporate and private banking as well as other financial services.

Contact Information

Project Contact: Max Ehrengren
Email Address: info@luminor.ee; max.ehrengren@luminorgroup.com
Telephone No.: +372 628 3300; +3726283201
Website: https://www.luminor.ee/en 
Office Address: Luminor Bank A.S. Liivalaia 45 10145 Tallinn Estonia

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.