Bank of Valletta plc - Allotment Policy

On 15 June, Bank of Valletta plc announced its allotment policy in respect of the applications for its €35 million 5.35% 2018 bond issue which was heavily over-subscribed. The General Public offering held on 8 June with an available balance of €20 million closed immediately after opening. BOV said it received 5,344 applications for a total value exceeding €100 million.

BOV received a total of €130.6 million for its 10-year bonds (including the subscriptions made during the pre-placement stage) and therefore exercised its over-allotment option bringing the total issue to €50 million. Total refunds of €80.6 million will be made by BOV through a direct credit into the applicant’s bank account.

Applications during the General Public offering up to a value of €4,000 were accepted in full. Meanwhile in the case of applications exceeding €4,000, the first €4,000 were accepted in full while 0.5425% of the balance was allotted.
BOV announced that it had received 2,448 applications from Preferred Applicants amounting to €47 million during the pre-placement stage. As previously announced, investors were allotted the first €7,500 in full whilst those applications with more than €7,500 received the first €7,500 in full together with only 1.6044% of the balance. The unallocated balance of €32 million was automatically rolled-over into the General Public Offering. Furthermore, the pre-placement stage of the ‘non-shareholders’ portion was also heavily oversubscribed as BOV received almost 5 times the maximum available on offer amounting to €15 million. As a result, only 20.74% of the original subscription was allotted.

Interest on these bonds started to accrue with effect from 15 June 2009 and trading on the Official List of the Malta Stock Exchange is expected to commence next week.

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