Bank of Valletta has just obtained regulatory approval from the MFSA for the listing of an unsecured Euro Medium Term Bond Programme of up to €250 million and for the issuance of the first tranche of Bonds. The first tranche of Bonds under the programme will be in the form of an issue of up to €100 million 5% unsecured subordinated Bonds (2029-2034). These will be available for subscription by all categories of investors.

€60 million in Bonds will be reserved for subscription by Bondholders and Shareholders of the Bank (holding specific Bonds and Shares as listed in the Final Terms) as well as employees of the Bank or any of its subsidiaries. €25 million in Bonds will be reserved for subscription by professional clients and eligible counterparties, each as defined in the conduct of business rulebook issued by the MFSA, while the remaining €15 million in Bonds will be reserved for subscription by the general public. Any portion not fully subscribed in any one of the planned allocations will be made available for subscription to the remaining allocations. Applications will be accepted between and including 22nd October 2024 and 19th November 2024. The Bank reserves the right to close the offer of Bonds earlier with respect to any one or more classes of applicants (depending on the total level of subscription in the Bonds).

Speaking about the Bond issue, BOV Chairman Dr Gordon Cordina stated, “I am pleased to announce the regulatory approval of a Medium Term Bond Programme of up to €250 million. The issue will support the Bank’s efforts to achieve its ambitious strategic plan, its medium and long term vision, and its commitment towards sustainable growth. We continue on our journey to sustain Bank of Valletta’s strong financial standing, strengthen our capital base and maintain a strong balance sheet, while at the same time offering value to the investor market and to our loyal shareholders and bondholders.”

Reiterating the Chairman’s comments, CEO Kenneth Farrugia expressed satisfaction on the achievement of yet another important milestone. “This Bond issue by Bank of Valletta is a clear signal to the market of the Bank’s confidence in its future growth strategy. We continue to build on years of experience in the financial services industry, on the elevated customer experience that we are offering, the innovation we are spearheading, and on the success that the Bank has come to be associated with. We renew our commitment to our customers, our people and all our stakeholders, who continue to place their trust in the Bank. The issue of the Medium Term Bond Programme is another step in the Bank’s plans to strengthen its position as Malta’s Bank of Choice.”

Applications will be subject to a minimum subscription amount of €10,000 and in multiples of €100 thereafter with the exception of applications by professional clients and eligible counterparties, which will be subject to a minimum subscription amount of €100,000 and in multiples of €100 thereafter. Applications for Bonds by retail clients will be subject to a suitability test conducted by the authorised financial intermediary irrespective of the investment service being provided. The Base Prospectus and Final Terms will be available for download from (https://www.bov.com/bond-prospectus) as from 11 October 2024. Printed copies of these documents will be available from Authorised Financial Intermediaries as from 22 October 2024.