MeDirect Bank (Malta) plc – Application For New Bond Issue
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 26 August 2026, MeDirect Bank (Malta) plc announced that it has submitted an application to the Malta Financial Services Authority requesting the admissibility to listing on the Official List of the Malta Stock Exchange of €30 million 5.85% unsecured subordinated bonds maturing between 2031 and 2036. The bonds will have a nominal value of €100 each and will be issued at par, and are intended to qualify as Tier 2 capital instruments. The proposed bond issue remains subject to all required regulatory approvals.
The bank explained that the proposed bond issue forms part of its capital management strategy and is intended to strengthen its regulatory capital position, optimise its Tier 2 capital structure and support its general capital and funding requirements.
The Board of Directors also resolved to implement a planned early redemption of the Bank’s four outstanding subordinated bond issues, namely the 5% subordinated unsecured bonds 2022-2027 and the 4% subordinated unsecured bonds 2024-2029, each of which is listed in both euro and pound sterling. The Bank intends to exercise its option to redeem these bonds on their next designated early redemption dates of 13 October 2026 and 5 November 2026 respectively, and confirmed that the thirty days’ prior written notice due to bondholders will follow in due course.
The Bank will apply the cash proceeds from the proposed bond issue, together with its existing cash reserves, towards the early redemption of the existing bonds. As at 26 August 2026, the amount outstanding on the euro-denominated bonds being redeemed stood at €50.9 million, alongside a further GBP 3.61 million on the sterling-denominated bonds.
Existing bondholders will be given first access to the new bonds. Holders of the euro-denominated bonds will be offered an exchange of their existing holdings for new bonds, while holders of the sterling-denominated bonds will be given a priority offer to apply for new bonds for a consideration in cash. Existing bondholders will also have the option to subscribe for additional new bonds in cash over and above their current holdings. Any new bonds not taken up by existing bondholders will be made available for subscription through an intermediaries offer.
Existing bondholders as at close of trading on 27 August 2026 will receive a pre-printed application form setting out details of their holdings. Furthermore, trading in the existing bonds on the Malta Stock Exchange will be suspended with effect from the close of business of 27 August 2026.
The bank stated that further details on the proposed bond issue will be published through further company announcements in due course, and that detailed information will be made available in the prospectus to be published following approval by the MFSA.
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.