Luminor issues €300m senior bond

Luminor has completed a €300m 4-year senior preferred bond issue. Luminor held a series of virtual meetings with European investors on 2 June and, following positive feedback, launched its new issue the next day. The offer of securities was oversubscribed quickly with Luminor receiving €2.2bn in orders from over 150 investors located across more than 25 countries.

The size, quality and diversity of the orders enabled Luminor to price the new security with a coupon of 3.551%. Investors in the United Kingdom accounted for over a third of the total book with good demand seen as well from investors in German-speaking Europe, complemented by increased demand from investors in France and BeNeLux.

Johannes Proksch, Chief Financial Officer, commented: ‘I am delighted with the interest we received from investors for our first senior bond issue in 2025, which follows our successful initial hybrid capital security issue earlier this year. This new issue enhances our MREL-position, extends our liability structure, and builds our investor base, which, together, ensure Luminor is well placed to support our customers and grow our business. 

The bond, which is callable one year prior to maturity and is rated A2 by Moody’s, is listed on the Irish Stock Exchange and was issued under Luminor’s Euro Medium Term Note and Covered Bond programme. Luminor Markets acted as a joint lead manager for the new issue.