MeDirect Bank (Malta) plc – Details Of 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 31 August 2026, MeDirect Bank (Malta) plc published a Prospectus following regulatory approval for 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.
Key Details
Amount Offered: €30 million (nominal)
Coupon: 5.85%
Issue Price: 100% (par)
Interest Payment Date: Annually on 13 October (first interest payment date is 13 October 2027)
Maturity Date: The bonds will mature on 13 October 2036. However, MeDirect Bank (Malta) plc reserves the right to redeem any or all of the bonds on any date between 13 October 2031 and 13 October 2036 subject to specific conditions detailed in the Prospectus. The Bank may in an exceptional event also redeem the bonds during the first five years of the bond as detailed in the Prospects.
Status: The bonds are Tier 2 Bonds and constitute direct, unsecured and subordinated obligations of the Bank, 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 Relevant Resolution Authority as provided by law.
Use of Proceeds: The net proceeds will constitute an integral part of the Bank’s capital plan to further strengthen its Tier 2 Capital requirements and will be used by the Bank to meet part of its general capital and funding requirements.
Plan of Distribution: The bonds are being first made available to existing bondholders as at close of trading on 27 August 2026 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. Holders of the euro-denominated bonds can exchange their existing holdings for new bonds, while holders of the sterling-denominated bonds are given priority to apply for new bonds for a consideration in cash. Existing bondholders also have the option to subscribe for additional new bonds in cash over and above their current holdings.
Any subscription for Bonds by any prospective investor (including existing bondholders) that are retail clients shall be subject to a Suitability Test to be performed.
Offer Period (for existing bondholders): 7 September to 25 September 2026.
An intermediaries’ offer will take place on 28 September up to 30 September 2026 if the bond issue is not fully subscribed from existing bondholders.
Minimum Subscription Amount: €10,000 and in multiples of €100 thereafter.
Listing Date: The bonds are expected to be listed on the Official List of the Malta Stock Exchange on 13 October 2026.
Downloads
Disclaimer
This webpage has been prepared based on the Prospectus dated 31 August 2026 issued by MeDirect Bank (Malta) plc, and no representations or guarantees are made by Rizzo, Farrugia & Co. (Stockbrokers) Ltd with respect to the accuracy of the information included therein. This webpage is a marketing communication for information purposes only, targeted at Retail Clients seeking income subject to a Suitability Assessment. It is NOT intended to be and should NOT be construed as an offer or solicitation to acquire or dispose of the Bonds. 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. Prospective investors should read the Prospectus dated 31 August 2026 before making an investment decision in order to understand the potential risks and rewards associated with the Bonds, which is available here and on the Issuer’s website https://www.medirect.com.mt/about-us/investor-relations. Prospective investors are to consult their independent financial advisor to ensure suitability of investing in the Bonds.
An application for listing of Bonds on the Malta Stock Exchange (“MSE”) has been made by the Issuer of the Bonds. The Malta Financial Services Authority (“MFSA”) authorised the Prospectus and the Bonds as eligible to listing on the MSE pursuant to Capital Markets Rules. The approval of the Prospectus by the MFSA should not be understood as an endorsement of the Bonds.
Investors purchasing the Bonds are advised that the Bonds are not simple and may be difficult to understand. The Bonds constitute subordinated and unsecured obligations of the Bank and are classified as complex financial instruments. The Bank is subject to the Bank Recovery and Resolution Directive (BRRD) as transposed in local laws and therefore, prospective investors should consider the risk that, in the event that the Bank becomes subject to resolution, the Bonds including any accrued interest, may be written down or converted into equity, and a broad range of other resolution actions may be taken by the Resolution Committee in respect of the Bank. Therefore, investors may lose part or all their investment.
The value of an investment, as well as the income therefrom, can go down as well as up and past performance is not necessarily indicative of future performance. Investors may lose some or all of the money invested.
This Advertisement is approved by Rizzo, Farrugia & Co. (Stockbrokers) Ltd. C13102, of Airways House, Fourth Floor, High Street, Sliema SLM 1551, which is licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap 370.
Rizzo Farrugia acts as Sponsor, Manager, and Distributor of the Bonds. Further information may be obtained from www.rizzofarrugia.com, by email to info@rizzofarrugia.com or calling +356 2258 3000.
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.