Subscription for INDEXO Bank’s subordinated bonds begins on April 17, 2026, marking a significant step in the Baltic lender’s strategy to strengthen its capital position and support loan portfolio growth. The public offering, approved by the Bank of Latvia, allows the bank to issue up to 3,000 bonds with a nominal value of EUR 1,000 each, targeting both private and professional investors across Latvia, Lithuania, and Estonia.
The subscription period runs from April 17 to April 24, 2026, with settlement scheduled for April 29, 2026. Each bond carries an annual coupon rate of 10.00%, and the minimum subscription amount is EUR 1,000, equivalent to one bond. The bank aims to raise EUR 3 million through this issuance, which will be used to reinforce its own funds adequacy and support credit portfolio expansion.
INDEXO Bank received regulatory approval from the Bank of Latvia for its subordinated bond issuance prospectus, enabling the public offering under the bank’s broader plan to develop a subordinated bond programme of up to EUR 10 million. This initiative aligns with the bank’s objective to enhance capital adequacy while fostering sustainable lending growth in the Baltics.
The bonds, identified by ISIN LV0000111078 under the issuance IDX1RBOND_01, are being offered through a public subscription process managed in coordination with Nasdaq Baltic Transaction Services. Investors wishing to participate must contact their respective banks or investment brokerage firms to confirm specific subscription acceptance times, which may vary depending on the intermediary.
Official documentation, including the base prospectus, final terms, and subscription process rules, is available as attachments to the Nasdaq Baltic notice. These materials outline the terms of the offer, procedural details, and risk factors associated with the subordinated debt instrument.
Subordinated bonds rank below senior debt in the event of liquidation but above equity, offering investors a higher yield in exchange for increased risk. For INDEXO Bank, such instruments contribute to Tier 2 capital under regulatory frameworks, helping to absorb losses while maintaining financial stability.
The issuance reflects ongoing efforts by Baltic banks to optimize capital structures amid evolving lending dynamics and regulatory expectations. By accessing the debt capital markets, INDEXO Bank seeks to diversify its funding sources beyond traditional deposits and strengthen its resilience in a competitive financial environment.
As of the announcement, no further details regarding investor demand or allocation results have been disclosed. The bank has not published post-subscription updates, and the final issuance size will depend on uptake during the subscription window.
For official updates, investors and market participants are advised to consult the Bank of Latvia’s regulatory announcements, Nasdaq Baltic’s official notices, and INDEXO Bank’s investor relations communications. These sources provide verified information on issuance terms, regulatory approvals, and procedural timelines.
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