4.50% IZOLA BANK PLC 30.06.2025

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Izola Bank plc - Prospectus dated 18 May 2015

The Company

Izola Bank was incorporated on 8 June 1994. Subsequently on 13 June 1994, the Bank was granted a licence by the Ministry of Finance to carry out the business of banking with non-residents. Following the enactment of the Banking Act on 15 November 1994 the Central Bank of Malta (CBM) issued a new licence to Izola Bank in line with the new legislation. In September 2005, the CBM approved a change to the terms of the licence so that Izola could undertake banking activities in all currencies, excluding the Maltese Lira, with both residents and non-residents. More recently in February 2010, the shareholders of Izola Bank approved a change in the status of the Bank from a private limited liability company to a public limited liability company in anticipation of a Public Debt Issuance Programme.

The principal activities of Izola Bank comprise: (i) the receipt and acceptance of customers’ money on deposit; (ii) the provision of advances; (iii) money transmission services via SWIFT; (iv) factoring services; (v) debit and credit card issuance; (vi) internet banking services;  (vii) cash and treasury management services.

Izola Bank plc is authorised to provide these banking services to residents of Malta, Belgium and France. Izola Bank’s main client is its shareholder, the Van Marcke Group (VMKG). The Bank also services some of the clients of VMKG.

VMKG was established in 1929 and currently employs over 1,350 people. The VMKG is one of Europe’s largest plumbing and heating wholesalers. It also has other interests in manufacturing involving office and laboratory furniture, sanitary ware and hands-free electronic controls for wash basins. The Belgian Group is also engaged in a diverse range of sectors, including packaging, transportation, asphalt supply, road milling contracting and recycling of reclaimed asphalt.

Use of Proceeds

The new €12 million bond issue is earmarked to fund the redemption of the €9 million 5.35% Notes which mature on 30 June 2015 as well as to meet part of the Bank’s general financial requirements.

Status

The Bonds constitute the general, direct, unconditional and unsecured obligations of the Issuer and shall at all times rank pari passu, without any priority or preference among themselves and with other unsecured debt.

Coupon

4.50%

Amount Issued

€12,000,000

ISIN Code

MT0000531211

Maturity

The bonds will be redeemed at 100% (par) on 30 June 2025.

Interest Payment

Annually on 30 June (first interest payment date is 30 June 2016)

XD Date

16 June

Listing

Official List

Directors

Magdalena De Roeck (Chairperson), Caroline Van Marcke, Joseph Caruana, Francis X. Gouder, Charles Hertogs, Guido Mizzi, Patrick H. Van Leynseele.

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