4.8% Bank of Valletta plc 2020

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Bank of Valletta plc - Securities Note dated 12 February 2010

The Company

Bank of Valletta p.l.c. was established on 21st March 1974. However its roots date back to 1809, when a group of prominent Maltese and British businessmen founded the Anglo-Maltese bank.

Banco di Malta and B Tagliaferro & Sons were established in 1812 whilst Sciclunas Bank was set up in 1830. In 1946, the Anglo-Maltese Bank and Banco di Malta merged and formed the National Bank of Malta. Three years later, Sciclunas Bank affiliated with the National Bank of Malta to form the National Bank of Malta Group. B Tagliaferro & sons became part of the Group in 1969. In 1974, Bank of Valletta took over the business of the National Bank of Malta. A minority of the Bank’s shares (9.6%) was sold to the Maltese public in 1974, while in 1975, another 20% of the share capital was sold to Banco di Sicilia.

The Company is authorised to carry on the business of banking under the Banking Act, Cap. 371 of the Laws of Malta, as a credit institution; it is licensed to provide investment services in terms of the Investment Services Act, Cap. 370 of the Laws of Malta, and is a licensed insurance sub-agent in terms of the Insurance Brokers and other Intermediaries Act (Cap. 404 of the Laws of Malta).

The Company is both the parent company and the principal operating arm of the BOV Group. Throughout the last ten years the BOV Group has diversified its areas of operation both through the Company and through subsidiaries but commercial banking undertaken through the Company remains the core of the BOV Group’s business. The BOV Group’s diversification has been principally in areas of financial services such as insurance and investment business, which complement its core banking business.

Use of Proceeds

The net proceeds from this bond issue will enhance BOV’s Tier II capital and will also be used to finance the redemption of the maturing €46.6 million 6.15% Bonds as well as meet part of its general funding requirements. BOV’s capital and liquidity positions already rank substantially higher than average European and US banking institutions and this new subordinated bond issue will further enhance its capital adequacy.

Security & Status

Unsecured & Subordinated

Coupon

4.8%

Amount Issued

€70,000,000

ISIN Code

MT0000021270

Maturity

The bonds will be redeemed at 100% (par) on 15 March 2020.

Interest Payment

Semi- annually on 15 March and 15 September

XD Date

1 March and 1 September

Listing

Official List

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