On  July  31  Hansabank issued subordinated bonds in the total value of

EEK 80

million. The maturity of the bonds is 7 years. The interest rate is 12%

for  the  first  two  years,  after  which  the  bank  has an option to

repurchase  the  bonds.  If the bank does not exercise this option, the

interest rate will rise to 13.5% for the remaining 5 years.