Banking & Finance

Ellex Raidla advises on a full range of financing matters and works with banks, investment firms, insurance companies and other financial institutions. We have unrivalled experience in disputes in this field, including landmark disputes on the authorities of regulatory and supervisory bodies. We are also a leading firm in Estonia in IPO and regulatory matters. Our experts have advised on the largest number of restructuring and acquisition transactions that have arisen in the banking sector.
Key projects in the field

  • Securities Market Act
  • Central Registry of Securities Act
  • Law on Investment Funds
  • Credit Institutions Act
  • Development Fund Act
  • Money Laundering and Terrorist Financing Prevention Act
  • Insurance Activities Act
  • Financial Supervision Authority Act

Key contacts

Raino Paron

Partner

Head of Banking & Finance and EU & Competition practice groups
+372 640 7170
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Ermo Kosk

Partner

+372 640 7170
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Gerli Kilusk

Partner

+372 640 7170
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Toomas Kasesalu

Counsel

+372 640 7170
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Martin Mäesalu

Senior Associate

+ 372 640 7170
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Helen Ratso

Senior Associate

+372 640 7170
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Kerstin Jürgenson

Associate

+370 640 7170
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Ursula Kosk

Associate

+372 640 7170
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Anna Trine Raudsepp

Associate

+372 640 7170
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Kadi Sink

Senior Associate

+ 372 640 7170
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Kevin Gerretz

Lawyer

+372 640 7170
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Key projects in the field

We advised Inbank in connection with 3.15 MEUR bond issue
Inbank issued AT1 bonds through private placement in the amount of 3.15 million euros. AT1 is a novelty for Estonian investors, which belongs to Tier 1 capital of the bank.
 
AT1 or Additional Tier 1 is a novel hybrid instrument in Estonian banking, having characteristics of both subordinated debt and equity, but belonging to Tier 1 capital in terms of capital adequacy calculation. For the investor, risk level and also the yield of AT1 bond is higher than that of an ordinary subordinated bond.
 
“AT1 bond is a complex instrument, issued in Estonia for the first time. With the issue, we wanted to test investors’ interest for bonds with perpetual term and higher risk. We are happy to announce that investors’ interest in our bond was higher than expected and we raised more capital than we initially anticipated,” said, Chairman of Supervisory Board of Inbank, Priit Põldoja.
 
Launched as a bank in 2015, Inbank provides services through its Internet bank and partner network. Inbank operates in the Estonian, Latvian, Lithuanian and Polish consumer financing market. In addition, Inbank raises international deposits from the German and Austrian market.
 
Inbank was advised by our Partner Raino Paron and Senior Associate Helen Ratso.
We advised LHV Varahaldus AS on the financial transaction where Nordica expanded its fleet
State-owned Estonian flag carrier airline Nordica is expanding its fleet with yet another Bombardier CRJ900 jet, the purchase and leasing to Nordica of which was financed by state-owned fleet owner Transpordi Varahaldus OÜ (TVH) issuing €10 million worth of bonds purchased in equal shares by LHV pension funds and LHV Bank.
 
LHV pension funds manager Romet Enok noted that their investment in TVH bonds offers a higher yield than can be found elsewhere on the international market under current conditions.
 
The new aircraft has already been employed in serving flights for the Scandinavian carrier SAS.
 
The financial transaction was advised by our Partner Ermo Kosk and Counsel Toomas Kasesalu.
 
To read more click HERE.
We are advising AS LHV Pank on the acquisition of the loan portfolio of Versobank AS
AS LHV Pank and Versobank AS (under liquidation), have on December 19 entered into an agreement, according to which AS LHV Pank will acquire the loan portfolio of Versobank AS for approximately EUR 18.4 million.
 
The loan portfolio is acquired as a loan portfolio company, consisting of loan and collateral agreements and two employees related to the portfolio. The loan portfolio contains loans to Estonian companies in the amount of approximately EUR 17 million as well as loans to Estonian resident private customers in the amount of approximately EUR 3 million.
 
"We are actively seeking possibilities to grow our business. Increasing the loan portfolio is of critical importance for us in order to increase interest income and raise efficiency, given the existing cost base," said Erki Kilu, Chairman of the Management Board of LHV Pank. "Although, the loan portfolio of Versobank is not big, it is a well-secured portfolio with an interest rate that meets our expectations. Furthermore, acquisition of the loan portfolio gives us real experience of how the loan and collateral information systems work also in case of acquired agreements."
 
According to the concluded agreement, the acquisition transaction is to be closed presumably on January 28, 2019.
 
The transaction is advised by our Partner Gerli Kilusk.