Demand for Latvian INDEXO Bank bond issue exceeded supply by 3.6 times
The ECB-licensed Latvian digital bank INDEXO Bank, part of the INDEXO Group managing more than EUR 1.5 billion in assets, has successfully completed a public offering of subordinated bonds. Instead of the initially planned EUR 3 million, the issuance raised EUR 5 million. Distribution in Lithuania was organized by the investment services firm Orion Securities.
“Strong investor demand for the subordinated bond issue reflects market confidence in the INDEXO Group’s development strategy and belief in the bank’s long-term growth potential. Investors are keen to support our ambition to build a modern, competitive, and sustainable bank in the Baltic financial market, offering an alternative to traditional solutions and fostering competition in the sector,” said Ivita Asare, Chief Financial Officer of the INDEXO Group.
Demand for the fast-growing bank’s bonds, offering a 10% yield and distributed between April 17–24, reached EUR 10.8 million, 3.6 times the initial offering size. The bank decided to increase the issue size to EUR 5 million.
More than 800 investors across all Baltic countries expressed interest in acquiring the subordinated bonds. The average investment amounted to EUR 13,000.
The highest demand was recorded in Estonia, where investors subscribed to EUR 7 million worth of bonds (64.6% of total demand). Latvian investors accounted for 28.7% (EUR 3 million), while Lithuanian investors contributed 5.1% (EUR 0.6 million).
The allocation of bonds followed predefined principles: each investor was allocated at least one bond, while investments exceeding EUR 20,000 were allocated on a pro rata basis, with institutional investors receiving around 62% of the requested amount and all other investors receiving around 52%.
The bonds are expected to be credited to investors’ securities accounts on April 29, with trading on the Nasdaq Riga regulated Baltic bond market scheduled to begin on May 8. The first interest payment is planned for October 29.
This issuance marks the first tranche of a subordinated bond program with a total potential size of up to EUR 10 million. Funds raised will be used to strengthen capital adequacy ratios and finance the expansion of the loan portfolio.
From its inception, the bank has been developed as a digital institution: core services such as account opening, daily transactions, and lending are accessible to clients via a mobile application, without physical infrastructure. This allows INDEXO Bank to operate more efficiently than traditional market players, grow its customer base faster, and offer competitive conditions.
About the INDEXO Group
INDEXO Bank operates as part of the publicly listed financial services group INDEXO Group. The group serves more than 300,000 clients and manages over EUR 1.5 billion in pension assets. Initially focused on pension savings, it has evolved into an integrated financial services platform. In the first quarter of 2026, it issued EUR 58.1 million in new loans.
The INDEXO financial services group includes the pension management companies IPAS INDEXO, AS INDEXO Atklātais Pensiju Fonds, and IPAS VAIRO, as well as INDEXO Bank and AS DelfinGroup.
Operating in Latvia, the group is listed on the Nasdaq Riga stock exchange and has more than 8000 shareholders and bondholders. Its mission is to create a better financial environment in Latvia and enhance the well-being of its population by providing modern and personalized financial services.
