NIB invests in Luminor’s MREL-eligible bond issue

NIB is investing EUR 10 million in a EUR 300 million, four-year MREL-eligible bond issued by Estonian-headquartered Luminor Bank AS. This is NIB Lending’s second purchase of a bond from Luminor that meets the minimum requirement for own funds and eligible liabilities (MREL).

Under EU Banking Union regulations, participating banks must meet specific regulatory targets to absorb losses and restore their capital positions, enabling them to continue their economic functions during and after a crisis.

The proceeds of the issuance support Luminor’s regulatory compliance, the diversification of its funding base and the increase of its loss-absorption capacity as well as  promote Luminor’s financing of small and medium-sized enterprises.

“By acting as an anchor investor and diversifying the borrower base, NIB strengthens the financial foundation of our clients.  NIB’s MREL-eligible bond purchase is part of our strategy to enhance our client value proposition and develop capital markets. The investment is also expected to  promote small and medium sized businesses financed by Luminor in all the Baltic countries,” says André Küüsvek, NIB President and CEO.

Luminor is the third-largest provider of financial services in the Baltic countries. The bank serves the financial needs of individuals, families, and companies. Luminor’s purpose is to improve the financial health of its customers and home countries, and to support their growth.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact
Ralf Hansson, Senior Banker, Financial Institutions, at +358 10 618 0240, ralf.hansson@nib.int
Arild Moen, Associate Director, Communications, +358 10 618 0496, arild.moen@nib.int