Coop Pank AS issued 250 mln euros of 4-year covered bonds

Coop Pank AS completed today, on March 13th 2025, the inaugural issuance of 250 million euros of 4-year covered bonds. The covered bonds were issued under the EUR 750 million Covered Bond Programme with the purpose of diversifying the funding structure of the bank. The bonds will be listed on Irish Stock Exchange. Moody’s Investors Service Ltd has assigned the covered bonds (P)Aa2 credit rating.

The covered bonds backed by Estonian residential mortgage loans were offered to European institutional investors. In total 56 investors participated in the offering and the issue was 4,7 times oversubscribed. The covered bonds were issued at a spread of 68 basis points over the mid-swap rate. The coupon of the issued bonds was 3,125% and re-offer yield 3,147%.

The bank's CFO, Paavo Truu, commented: "The issuance of the first international covered bond is a significant event for Coop Pank, as it provides us with an additional long-term and stable source of funding to finance our business growth, particularly in offering long-term loans to Estonian individuals and businesses. The strong results of the issuance also demonstrate the trust that professional investors have in Coop Pank."  

Information on Coop Pank AS covered bonds is available at: https://www.cooppank.ee/en/investor.

Coop Pank, based on Estonian capital, is one of the five universal banks operating in Estonia. The number of clients using Coop Pank for their daily banking reached 211,000. Coop Pank aims to put the synergy generated by the interaction of retail business and banking to good use and to bring everyday banking services closer to people’s homes. The strategic shareholder of the bank is the domestic retail chain Coop Eesti, comprising of 320 stores. 

Additional information:
Paavo Truu
CFO
Phone: +3725160 231
E-mail: paavo.truu@cooppank.ee