Bay Street offers to buy back bonds at 102%

In a first for the local financial market, Bay Street Finance plc this morning announced that it will be inquiring whether holders of its €6.5 million outstanding 8% Bonds are willing to sell their bonds back to the Company at the price of 102%. This offer will be valid from 15 October 2010 to 15 November 2010. Bondholders who opt to sell their bonds (which mature in June 2012) back to the Company will receive their capital at 102% plus the accrued interest up to 15 November on 24 November.

Meanwhile on the local equity market, HSBC Bank Malta plc and Bank of Valletta plc moved in opposite directions for the second consecutive session. BOV’s share price edged a further 0.6% higher to regain the €3.28 level on increased volumes of over 18,000 shares. On the other hand, HSBC shaved another 0.7% to drop back to the €2.80 level on almost 21,000 shares.

FIMBank plc slumped 4% to the US$0.95 level across four trades amounting to 35,000 shares. The trade finance specialist recently announced that it submitted an application with the Listing Authority to issue a new €25 million bond carrying a coupon of 4.25% and maturing in 2013. Subject to approval from the MFSA, the Bonds will be denominated in both euro and US Dollars and preferred applicants will be offered preferential terms which will be disclosed in due course.

The only other active equity, Middlesea Insurance plc, edged 2.2% higher to regain the €0.95 level on a single trade of 1,658 shares.

On the bond market, the Central Bank of Malta Stockbroker raised its bid prices for Malta Government Stocks for the second time this week as Eurozone yield remained well below the 2.30% level. The longer dated stocks all moved closer to their recent highs with the 5.1% MGS 2022 (I) rising 10 basis points to a new high of 111.14%.

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