HSBC Bank Malta plc - New Bond Issue

HSBC Bank Malta plc published a Prospectus on 15 September 2008 in connection with a new €25 million bond issue. The new bonds are for a 10-year period (with a maturity date of 7 October 2018) and carry a coupon of 5.9% per annum. The Bank reserves the right to increase the amount up to €30 million. Interest is payable semi-annually on 7 April and 7 October of each year with  the first interest payment date on 7 April 2009.

A pre-placement stage is taking place on Friday 19 September 2008 for minimum subscriptions of €15,000 (nominal) and in multiples of €100 thereafter.

Subscriptions for the General Public offer open on Wednesday 24 September and close on Tuesday 30 September or earlier in the event of over-subscription. Applications are for a minimum of €2,500 (nominal) and in multiples of €100 thereafter. HSBC Bank Malta plc has submitted an application for the bonds to be admitted to the Official List of the Malta Stock Exchange.

The net proceeds from the bond issue will be used by HSBC to meet part of its general financing requirements particularly to match its 10-year loans. Moreover, the funds constitute additional own funds (Tier II capital) in terms of the Banking Act. This will help HSBC to maintain its capital ratio above the Group’s benchmark of 10% and regulatory requirement of 8%. As at 31 December 2007, the capital ratio was of 10.31% and this is expected to rise to 10.47% by end of 2008.

For further information on HSBC Bank Malta and the bond issue, investors are requested to consult the Prospectus and the Company Update which is available on our website or by email upon request..

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