Speed read

First issuance of covered bonds in the Baltic states.

European Bank for Reconstruction and Development (EBRD) invests EUR 28 million in debut covered bonds issued by Luminor Bank.

Investment complements EBRD's policy reform engagement.

In full

The EBRD has invested EUR 28 million in the first-ever covered bond issued in the Baltic states to support the establishment of a new capital market instrument in this region. The debut covered bond was placed by Luminor Bank AS, attracting strong demand from a diverse international investor base.

Luminor was established in October 2017 through the merger of Nordea Bank Abp and DNB Bank ASA in the Baltic states. Based in Estonia, it is the third-largest banking group in the Baltic states with a market share of 18.7 per cent in lending across the region.

In October 2019, a consortium of private equity funds managed by Blackstone acquired a majority stake.

While the first issuance is secured with Estonian mortgages, Luminor plans to add Lithuanian and Latvian assets in the cover pool for future issuances of pan-Baltic covered bonds.

The EBRD says the development and integration of the capital markets in the Baltic states has been the backbone of its policy engagement in the region. In 2017, the three Baltic states signed a Memorandum of Understanding to create a Pan-Baltic Capital Market and the EBRD, with support from the EU, is working with the authorities on a number of pan-Baltic projects, including covered bonds.

The EBRD says the issuance represents a significant step towards the realization of a Pan-Baltic Capital Market and the wider Capital Market Union agenda in the EU.

The EBRD says it has invested in the Baltic states since they regained their independence in 1992. To date, the Bank says it has invested close to EUR 2.5 billion in 277 projects in Estonia, Latvia and Lithuania combined.

How do I enable cookies in my browser?

Internet Explorer
1. Click the Tools button (or press ALT and T on the keyboard), and then click Internet Options.
2. Click the Privacy tab
3. Move the slider away from 'Block all cookies' to a setting you're comfortable with.

Firefox
1. At the top of the Firefox window, click on the Tools menu and select Options...
2. Select the Privacy panel.
3. Set Firefox will: to Use custom settings for history.
4. Make sure Accept cookies from sites is selected.

Safari Browser
1. Click Safari icon in Menu Bar
2. Click Preferences (gear icon)
3. Click Security icon
4. Accept cookies: select Radio button "only from sites I visit"

Chrome
1. Click the menu icon to the right of the address bar (looks like 3 lines)
2. Click Settings
3. Click the "Show advanced settings" tab at the bottom
4. Click the "Content settings..." button in the Privacy section
5. At the top under Cookies make sure it is set to "Allow local data to be set (recommended)"

Opera
1. Click the red O button in the upper left hand corner
2. Select Settings -> Preferences
3. Select the Advanced Tab
4. Select Cookies in the list on the left side
5. Set it to "Accept cookies" or "Accept cookies only from the sites I visit"
6. Click OK

Speed read

First issuance of covered bonds in the Baltic states.

European Bank for Reconstruction and Development (EBRD) invests EUR 28 million in debut covered bonds issued by Luminor Bank.

Investment complements EBRD's policy reform engagement.

In full

The EBRD has invested EUR 28 million in the first-ever covered bond issued in the Baltic states to support the establishment of a new capital market instrument in this region. The debut covered bond was placed by Luminor Bank AS, attracting strong demand from a diverse international investor base.

Luminor was established in October 2017 through the merger of Nordea Bank Abp and DNB Bank ASA in the Baltic states. Based in Estonia, it is the third-largest banking group in the Baltic states with a market share of 18.7 per cent in lending across the region.

In October 2019, a consortium of private equity funds managed by Blackstone acquired a majority stake.

While the first issuance is secured with Estonian mortgages, Luminor plans to add Lithuanian and Latvian assets in the cover pool for future issuances of pan-Baltic covered bonds.

The EBRD says the development and integration of the capital markets in the Baltic states has been the backbone of its policy engagement in the region. In 2017, the three Baltic states signed a Memorandum of Understanding to create a Pan-Baltic Capital Market and the EBRD, with support from the EU, is working with the authorities on a number of pan-Baltic projects, including covered bonds.

The EBRD says the issuance represents a significant step towards the realization of a Pan-Baltic Capital Market and the wider Capital Market Union agenda in the EU.

The EBRD says it has invested in the Baltic states since they regained their independence in 1992. To date, the Bank says it has invested close to EUR 2.5 billion in 277 projects in Estonia, Latvia and Lithuania combined.