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Bank of Valletta plc – Issue of Series 2 of Bond Issuance Programme

Jonathan Falzon

May 21, 2025

21 May, 2025
8 min read
21 May, 2025
8 min read

Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.

On 21 May 2025, Bank of Valletta plc announced that it approved the Final Terms relating to the Series 2 Tranche 1 bonds under its existing Unsecured Euro Medium Term Bond Programme as per Base Prospectus dated 11 October 2024. The Bank intends to issue the Series 2 Tranche 1 in the form of an issue of €100 million (with an overallotment option of a further €50 million on the part of the Bank, which may result in such offer being increased to a maximum offer amount of up to €150 million) 5% unsecured subordinated bonds maturing between 2030 and 2035. The salient details of Series 2 Tranche 1 of the bond issuance programme are as follows:

Amount Offered:

Up to €150 million (nominal)

Coupon:

5.00%

Status:

The Bonds are Tier 2 Bonds and constitute direct, unsecured and subordinated obligations of the Issuer, which will at all times rank pari passu without any preference among themselves. In a dissolution and winding up of the Bank, the claims of Bondholders in respect of the Bonds will be subordinated to the claims of all depositors and other unsubordinated secured and unsecured creditors of the Bank and will not be repaid until all other unsubordinated debt outstanding at the time has been settled in full. In the event of a resolution of the Bank or in any other instances under applicable law, the Bonds are subject to conversion or write down by the applicable resolution authorities as provided by law.

Offer Period:

Expected to open on Monday 9 June 2025.

Minimum Subscription Amount:

Retail Investors: €10,000 and in multiples of €100 thereafter.

Professional Clients and Eligible Counterparties: €100,000 and in multiples of €100 thereafter.

Plan of Distribution:

  • An amount of up to €50 million will be reserved for subscription by Preferred Applicants, which are holders of the 3.50% BOV subordinated bonds 2030 (Series 1 & 2), 3.75% BOV subordinated bonds 2026/31, 5.00% BOV subordinated bonds 2029/34 (Series 1) and shareholders of BOV as at close of trading on 23 May 2025, together with employees of the Bank and any of its subsidiaries.
  • An amount of up to €35 million will be reserved for subscription by Professional Clients and Eligible Counterparties.
  • The remaining €15 million will be reserved for subscription by the general public.

Any portion not fully subscribed to by a particular pot will be made available for subscription to another pot.

Application Procedure:

Interested applicants are kindly requested to contact us for further information on the detailed application procedure.

Listing:

Official List of the Malta Stock Exchange

Downloads:

Base Prospectus dated 11 October 2024

Final Terms dated 2 June 2025

Fact Sheet dated 2 June 2025

 

Disclaimer:

This webpage has been prepared based on the Base Prospectus dated 11 October 2024 and Company Announcement BOV508 dated 21 May 2025 issued by Bank of Valletta plc, and no representations or guarantees are made by Rizzo, Farrugia & Co. (Stockbrokers) Ltd with respect to the accuracy of the data. This webpage is for information purposes only. It is NOT intended to be and should NOT be construed as an offer or solicitation to acquire or dispose of any of the securities or issues mentioned herein. Rizzo, Farrugia & Co. (Stockbrokers) Ltd accepts NO responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this webpage.

Investors wishing to acquire the Bonds should read the Base Prospectus and Final Terms before making any investment decision in order to fully understand the potential risks and rewards associated with an investment in the Bonds. A copy of the Base Prospectus and Final Terms will be available on Rizzo, Farrugia & Co. (Stockbrokers) Limited’s website. The Bonds are COMPLEX financial instruments and investment in the Bonds may not be suitable for all investors. Prospective investors are required to consult their financial advisers as to the suitability or otherwise of acquiring such Bonds. The value of the investment and the income therefrom may go down as well as up and investors may lose some or all of the money invested.

Rizzo, Farrugia & Co. (Stockbrokers) Ltd is acting as Joint Sponsor to Bank of Valletta plc.

This advertisement has been issued by Rizzo, Farrugia & Co. (Stockbrokers) Limited, a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta, and having its registered address at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

On 21 May 2025, Bank of Valletta plc announced that it approved the Final Terms relating to the Series 2 Tranche 1 bonds under its existing Unsecured Euro Medium Term Bond Programme as per Base Prospectus dated 11 October 2024. The Bank intends to issue the Series 2 Tranche 1 in the form of an issue of €100 million (with an overallotment option of a further €50 million on the part of the Bank, which may result in such offer being increased to a maximum offer amount of up to €150 million) 5% unsecured subordinated bonds maturing between 2030 and 2035. The salient details of Series 2 Tranche 1 of the bond issuance programme are as follows:

Amount Offered:

Up to €150 million (nominal)

Coupon:

5.00%

Status:

The Bonds are Tier 2 Bonds and constitute direct, unsecured and subordinated obligations of the Issuer, which will at all times rank pari passu without any preference among themselves. In a dissolution and winding up of the Bank, the claims of Bondholders in respect of the Bonds will be subordinated to the claims of all depositors and other unsubordinated secured and unsecured creditors of the Bank and will not be repaid until all other unsubordinated debt outstanding at the time has been settled in full. In the event of a resolution of the Bank or in any other instances under applicable law, the Bonds are subject to conversion or write down by the applicable resolution authorities as provided by law.

Offer Period:

Expected to open on Monday 9 June 2025.

Minimum Subscription Amount:

Retail Investors: €10,000 and in multiples of €100 thereafter.

Professional Clients and Eligible Counterparties: €100,000 and in multiples of €100 thereafter.

Plan of Distribution:

  • An amount of up to €50 million will be reserved for subscription by Preferred Applicants, which are holders of the 3.50% BOV subordinated bonds 2030 (Series 1 & 2), 3.75% BOV subordinated bonds 2026/31, 5.00% BOV subordinated bonds 2029/34 (Series 1) and shareholders of BOV as at close of trading on 23 May 2025, together with employees of the Bank and any of its subsidiaries.
  • An amount of up to €35 million will be reserved for subscription by Professional Clients and Eligible Counterparties.
  • The remaining €15 million will be reserved for subscription by the general public.

Any portion not fully subscribed to by a particular pot will be made available for subscription to another pot.

Application Procedure:

Interested applicants are kindly requested to contact us for further information on the detailed application procedure.

Listing:

Official List of the Malta Stock Exchange

Downloads:

Base Prospectus dated 11 October 2024

Final Terms dated 2 June 2025

Fact Sheet dated 2 June 2025

 

Disclaimer:

This webpage has been prepared based on the Base Prospectus dated 11 October 2024 and Company Announcement BOV508 dated 21 May 2025 issued by Bank of Valletta plc, and no representations or guarantees are made by Rizzo, Farrugia & Co. (Stockbrokers) Ltd with respect to the accuracy of the data. This webpage is for information purposes only. It is NOT intended to be and should NOT be construed as an offer or solicitation to acquire or dispose of any of the securities or issues mentioned herein. Rizzo, Farrugia & Co. (Stockbrokers) Ltd accepts NO responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this webpage.

Investors wishing to acquire the Bonds should read the Base Prospectus and Final Terms before making any investment decision in order to fully understand the potential risks and rewards associated with an investment in the Bonds. A copy of the Base Prospectus and Final Terms will be available on Rizzo, Farrugia & Co. (Stockbrokers) Limited’s website. The Bonds are COMPLEX financial instruments and investment in the Bonds may not be suitable for all investors. Prospective investors are required to consult their financial advisers as to the suitability or otherwise of acquiring such Bonds. The value of the investment and the income therefrom may go down as well as up and investors may lose some or all of the money invested.

Rizzo, Farrugia & Co. (Stockbrokers) Ltd is acting as Joint Sponsor to Bank of Valletta plc.

This advertisement has been issued by Rizzo, Farrugia & Co. (Stockbrokers) Limited, a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta, and having its registered address at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.