The three-year floating-rate bonds will expire on November 21, 2009. The bonds pay interest quarterly, and the interest is the three-month Bubor plus 1%. The interest on the first interest period is annual 9.2%. The current one is the second issue under ELLA Bank’s Ft 12 billion mortgage bond program launched a year ago. The first issue, of Ft 1.1 billion three-year floating-rate bonds, took place last December.
Shareholders of ELLA Bank decided at a general meeting on October 26 to raise the bank’s registered capital to Ft 4 billion. The owners also decided to issue a €7 million subordinated loan to ELLA, to be disbursed in several installments. Excluding the current one, ELLA Bank received subordinated loans to a combined €3.5 million from its majority-owner, Luxembourg-based Mortgage Holding, earlier this year. As a result of the capital raise, Mortgage Holding’s share of ELLA will gain another 5% of the bank, bringing its stake to 95%.
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