The second largest bank in Slovakia, VUB Banka, a.s. is preparing to float an issue of two-year mortgage-backed bonds amounting to SKK 500 million. The par value of the bonds will be SKK 1 million. The bank will be issuing bods for three months, starting on June 26. The security will bear a fixed coupon at 4.75 percent p.a. paid annually.
The issue price has been set at 90-110 percent of the par value. Bonds will be issued as bearer security in book-entry form. The bonds will be issued in private placement for investors selected in advance, who will thus acquire bonds at a total volume of a minimum of EUR 50,000 per investor. The bank will apply for the bonds' admission for trading on the listed parallel bond market at the Bratislava Stock Exchange (BCPB).
VUB is a member of the international Intesa Sanpaolo bank group. VUB offers services in Slovakia through 207 retail branches and eleven mortgage centers. Simultaneously, VUB runs 32 firm branches that specialize in the provision of services to small and medium-sized companies and local government. It has approximately 1.5 million clients. Through its branch in Prague, it also operates on the Czech market.
(EUR 1 = SKK 30.309 on June 18)