The pension management company IPAS Indexo (hereinafter – INDEXO) is creating a subsidiary company JSC IDX1R for the needs of the future INDEXO Bank, owning 100% of the newly established company’s shares. JSC IDX1R’s share capital will be EUR 2,000,000 and it will be located in Riga, on Elizabetes Street 13-1A. The necessary documents for the establishment of the company have been submitted to the Register of Enterprises.

The INDEXO team is currently working on the documentation of the bank license application and it is planned that after receiving the license, this newly established joint stock company will become the INDEXO Bank.

INDEXO co-founder and chairman of the board Valdis Siksnis will serve on the board of JSC IDX1R, while the company council will consist of INDEXO bank project manager Tīna Kukka, INDEXO private sector development manager Vladimirs Bolbats and INDEXO co-founder and board member Henrik Karmo. Until receiving the bank license, the composition of the board and council will be reviewed.

In order to ensure the transparency of the company’s performance, INDEXO will separately indicate the performance of pension management and the investments necessary for the establishment of the bank in its reports. It is planned that the employees engaged in the start of the bank’s operations will transfer to work for this subsidiary over time.

As reported, earlier this year INDEXO conducted its IPO where it successfully met its investment target of EUR 7.49 million and the company’s shares were oversubscribed by around EUR 2.5 million. In the IPO, investors acquired the pension management company’s shares, and it is planned that the new INDEXO Bank will be a subsidiary of the pension management company. INDEXO shares were listed on July 15 on Nasdaq Riga Baltic Main List. The ticker symbol of INDEXO shares in IDX1R.

By the end of this year INDEXO plans to submit an application to receive a license for the commercial bank in accordance with laws and regulations and will start phasing in banking services upon receipt of the license – starting with banking services to private individuals, which will be followed by services also to corporate clients.

Bank (credit institution) license is subject to authorization granted by the European Central Bank based on Financial and Capital Market Commission’s (FCMC) proposal.