FIMBank plc - New Bond Issue

On 17 March FIMBank plc announced a new €15 million bond issue available in euro and in US Dollars. Both bonds carry a coupon of 7% per annum and the Bank reserves the right to increase the amount up to the equivalent of €30 million. The bonds have a final maturity date of 30 April 2019 but FIMBank may opt to redeem the bonds between 1 May 2012 and 29 April 2019.

Interest is payable semi-annually on 30 April and 30 October of each year with the first payment date on 30 October 2009. Every six months, bondholders will be given the option of receiving the interest either in cash or in the form of new ordinary shares. The attribution price of the new ordinary shares will be determined by FIMBank plc and announced 30 calendar days prior to the interest payment date.

A pre-placement exercise is taking place on Thursday 17 April 2009. Minimum subscriptions at pre-placement stage are of €10,000 or US$10,000 (nominal) and in multiples of €100 or US$100 thereafter. Meanwhile subscriptions for the General Public Offer open on Thursday 23 April and close on Thursday 30 April or earlier in the event of over-subscription. Applications during the General Public offer are for a minimum of €2,000 or US$2,000 (nominal) and also in multiples of €100 or US$100 thereafter. FIMBank plc has submitted an application for both bonds to be admitted to the Official List of the Malta Stock Exchange.

FIMBank’s shareholders and staff (preferred applicants) are entitled to apply for the bonds at a preferential price of 97%, i.e. at a 3% discount to their nominal value.

The net proceeds from the bond issue shall be used by the Bank to support the general growth of the Group as well as implementing its investment strategy of expansion into new products, markets and activities. The Group is also considering widening its business ventures into complementary activities including private banking. FIMBank intends to increase its factoring joint-venture network in Brazil, Russia and India. The Bank’s expansion pattern mirrors the one adopted by FIMBank with the recently sold Indian joint venture Global Trade Finance (GTF), EgyptFactors and MENAFactors i.e. finding suitable partners among local financial institutions/corporates with good access to clients in fast growing, but stable emerging markets and then setting up joint ventures with these entities as well as reputable international or supranational institutions such as the IFC, the European Bank for Reconstruction and Development (EBRD), and the Asian Development Bank amongst others. The formula has proved its worth in the GTF case and the Bank is out to replicate this model in every market they penetrate.

For further information on the bond issue, investors are requested to consult the Prospectus and may also download a copy of a presentation providing further information on the 2008 results as well as the Bank’s strategy. Those investors who wish to purchase some bonds, may also download an application form and submit to our office accompanied by payment.