AS ”Akciju komercbanka ”Baltikums”” (hereinafter – the Bank) has decided to redeem 37,900 (thirty-seven thousand nine hundred) bonds (ISIN LV0000800407) on 14 October 2009 after AS ”Akciju komercbanka ”Baltikums”” repurchased them on the secondary market.

As at 07.10.2009, the total amount of redeemed bonds of the third issue was EUR 3.79 million (37.9% of the issue or 37,900 bonds).

At present, Baltikums Banka bonds of the third issue with the total amount of EUR 6.210 million are publicly quoted and listed on the stock exchange NASDAQ OMX Riga. The Bank has successfully redeemed first two issues of its bonds earlier.

The Bank’s interest in redemption of its own bonds is caused by the following factors. First, Baltikums Banka has considerable free funds. Second, these bonds are traded in the market with a significant discount to the nominal; therefore, Baltikums Banka redeems the bonds prematurely and thus minimizes its interest expenses. The Bank believes too that by ensuring market liquidity of its bonds it contributes to maintaining good business relations with investors both currently and in the future.  The Bank’s opinion is that it is very important especially these days, when there is instability and nervousness in the market.

In the future, the Bank might consider more bonds issues depending on the situation in the financial markets and customer demand for financing of promising projects.

The non-audited profit of Baltikums Banka for the first half of the year amounted to LVL 1.072 million. As of 30 June this year, the Bank’s assets made up LVL 103.916 million. At the end of June, Baltikums Banka issued LVL 26.863 million in bonds including loans to households for home purchase worth LVL 14.1 thousand and mortgage loans worth LVL 31.7 thousand. The amount of attracted deposits was LVL 74.482 million by the end of June.

Information on public bonds issued by the Bank:

Tatjana Gaivoronska

Baltikums Banka

Head of the Product Development and Marketing Department

Tel.: +371 67 031 343, +371 29 253 515

E-mail: tatjana.gaivoronska@baltikums.eu