IPAS "Indexo" (hereinafter - INDEXO) has submitted commitment letters for a total amount of EUR 4.02 million to the Bank of Latvia within the framework of the licensing process for the new INDEXO Bank. This, in addition to the EUR 9.011 million raised during the share issue in December, ensures all the capital necessary for obtaining the license and commencing operations for the new bank.

The examination of documents for the new bank's license is currently ongoing, and the approval of the commercial bank license requires approval from the European Central Bank following the proposal from the Bank of Latvia.

"Our understanding is that the submission of commitment letters was the last prerequisite for making a decision on bank license. It should be noted that a new banking license has not been issued in Latvia for many years, and this is the first case where a license is granted with the involvement of the European Central Bank. The process is very complex and time-consuming. Technically, we are almost ready to start the operations of the new bank and eagerly await the conclusion of the licensing process to bring more competition to the Latvian banking market," says Valdis Siksnis, Chairman of the Board at INDEXO and one of the founders.

INDEXO has submitted a total of 9 commitment letters to the Latvian Bank, in which investors commit to invest a total of EUR 4.02 million, if requested by INDEXO. These commitment letters are valid for 18 months, and INDEXO will pay a 5% commission fee to these investors for undertaking the commitments. These investment commitment letters will be used for capital raising only if future capital raising in the public capital market cannot be implemented on more favorable terms.

As previously reported, since mid-2022, INDEXO has been developing the project for the establishment of a new bank, and capital raising is the final stage in obtaining the bank's license and commencing operations. Throughout 2023 work has been completed on a secure and modern banking IT infrastructure. INDEXO Bank's mobile application has been developed with all necessary integrations for an impeccable customer experience. Additionally, fundamental products for individuals have been created, including current accounts, payments and cards, savings accounts and deposits, loans and, of course, convenient administration for third-pillar pensions. Upon receiving the license, INDEXO Bank will commence its operations serving individuals, while services for businesses will be developed in 2024.


About INDEXO

INDEXO is an asset management company licensed by the Bank of Latvia, which offers modern 2nd and 3rd pillar pension saving plans in Latvia. INDEXO is the fastest growing pension management company in the Baltics with more than 127 thousand customers and approximately EUR 950 million euros of assets under management.

INDEXO is a Nasdaq Riga Stock Exchange listed company with close to 6000 shareholders and has an aim to fight for a better financial environment in Latvia. INDEXO vision is to become a financial services group that provides modern, personalized services empowering Latvia’s people for their prosperity.

Additional information is available at www.indexo.lv.

Contact information:
Ieva Bauma
IPAS "Indexo”
Board Member, Marketing Manager
Email: ieva.bauma@indexo.lv
Phone: +371 28636789