On 5 February 2010, Bank of Valletta plc announced that it has formally submitted an application to the Listing Authority for the admissibility to listing of €50 million in new 4.8% Subordinated Bonds redeemable in 2020 and subject to an over-allotment option of up to a further €20 million. The proceeds from the Bond Issue will be used to finance the redemption of the existing €46.6 million 6.15% BOV Subordinated Bonds 2010 maturing on 15 March 2010. The proceeds will also serve to further strengthen BOV’s Tier II Capital and for the general financing requirements of the Group.
BOV intends to give preferential allocation to the current bondholders of the maturing 6.15% Bonds who surrender their existing holding, in part or in whole, in favour of an equivalent amount in the new 4.8% Bonds. In this respect, bondholders as at close of trading on 5 February, will be entitled to such preference. Moreover bondholders have to submit their applications by not later than Wednesday 3 March to benefit from the preferential allocation.
Further information on the new bonds will be available in the Summary Note and Securities Note which will be available on 15 February 2010 following approval by the Listing Authority.