Fellow Bank plans the issuance of a debenture loan of not less than EUR 4 million
FELLOW BANK PLC STOCK EXCHANGE RELEASE, INSIDE INFORMATION 30.8.2022 AT 1:00 PM EEST
Fellow Bank plans the issuance of a debenture loan of not less than EUR 4 million and assesses options to further strengthen solvency
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Fellow Bank Plc plans to issue a Tier 2 debenture loan of not less than EUR 4 million (the "Debenture Loan") during the early autumn of 2022. The five-year Debenture Loan is expected to carry a fixed annual interest at the rate of 8 per cent. Should the Debenture Loan be issued, it will constitute a subordinated debt instrument, which is included in the Tier 2 capital referred to in the prudential regulation applicable to Fellow Bank.
Evli Plc, one of Fellow Bank's largest shareholders, has committed to subscribe for the Debenture Loan for EUR 2 million, subject to certain customary conditions. In addition, the Debenture Loan will be offered directly to a limited number of investors.
The issuance of the Debenture Loan is expected to strengthen the bank's solvency and enable strong growth of the loan portfolio also during the autumn. In the future, the growth of the loan portfolio will require strengthening the solvency further in order to finance the growth. At the moment, Fellow Bank is assessing different options to further strengthen the solvency in the future, including organising a potential share issue at a time beneficial for the company.
Further information
Teemu Nyholm, CEO, Fellow Bank Plc, teemu.nyholm@fellowpankki.fi, tel. +358 50 577 1028
Fellow Bank in brief
Fellow Bank Plc is a new Finnish digital bank that helps both personal and business customers to manage their day-to-day finances in a flexible and straightforward manner. For savers, we offer an attractive interest rate on deposits. Fellow Bank Plc is regulated by the Financial Supervisory Authority of Finland and listed on Nasdaq Helsinki’s main list (FELLOW). www.fellowbank.com
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