Urbo Bankas will issue bonds worth EUR 3.14 million with 7 per cent yield to maturity (YTM)
Urbo bankas UAB, company code 112027077, address: Konstitucijos pr.18B, Vilnius.
Urbo Bankas, a Lithuanian-owned bank, will begin the second phase of its bond offering on 7 July. During the offering, investors in the Baltic states will be offered the opportunity to purchase bonds with a total nominal value of EUR 3.14 million and 7 per cent yield to maturity (YTM).
“We are growing faster than the market average in both the retail and business customer financing segments. To continue our steady expansion and strengthen our capital base, we are diversifying our funding sources and continuing the subordinated bond issuance program, worth up to EUR 10 million, that we launched last year”, says Marius Arlauskas, Head of Administration of Urbo Bankas.
Interest from investors exceeded expectations
The first phase of the Urbo bond issuance programme, which took place last fall, attracted more investor interest than expected – nearly EUR 7 million were raised instead of the planned EUR 5 million. The second phase, scheduled for 7–17 July, is expected to involve the issuance of the remaining portion of the bonds, worth just over EUR 3 million.
The value of a single Urbo Bankas bond is EUR 1,000, and interest rate of the bonds is 7 per cent. Interest will be paid to investors on a quarterly basis.
According to Mr. Arlauskas, the bonds will be offered publicly to retail and institutional investors in all three Baltic countries. The maturity date for this bond issue is 21 October 2035. The bank will also have the right to redeem the bonds early (five years after their issuance) provided it notifies bondholders no later than 30 days in advance.
“The funds raised will enable us to steadily increase our financing volumes, expand the services we offer and contribute even more actively to the implementation of our clients’ plans. It is important for us to grow sustainably while maintaining a strong financial foundation”, says the Head of Administration of Urbo Bankas.
The bond market is growing
In recent years, bonds have become an increasingly popular financing and investment instrument in Lithuania. According to data from the Bank of Lithuania, in 2025, the Lithuanian bond market raised EUR 1.5 billion through 336 issuances, i.e., nearly double the amount raised in 2024, when EUR 0.8 billion were raised.
According to Mr. Arlauskas, the growing market activity indicates that bonds are becoming an increasingly attractive investment instrument for both private and institutional investors.
“Bonds allow businesses and financial institutions to diversify their sources of funding and ensure continued growth. Meanwhile, for investors, this is an opportunity to purchase securities during a period of dynamic change, knowing in advance the future return, the stable periodic interest payments and the maturity date”, says Marius Arlauskas, Head of Administration of Urbo Bankas.
Urbo Bankas first entered the capital markets back in 2018, when it issued a 7-year subordinated bond offering and raised EUR 2.21 million. More than 100 investors in five countries purchased the bonds at that time, and they were successfully redeemed in July 2025.
On Thursday, 9 July, at 14:00 a.m., representatives of the issuer and Artea Bankas will host an investor webinar in English. The webinar will provide a detailed overview of URBO Bank’s activities and present its investment opportunities. The registration form is available here: https://events.teams.microsoft.com/event/440c57ed-69e8-44ba-b324-b4cdef44b524@928067bd-1ab0-4f68-8e7d-a418dedb253d.
For more information please contact: Julius Ivaška, Head of Business Division, tel. +370 601 04 453, e-mail media@urbo.lt
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