Bank of Valletta plc - Details of New Bond Issue

On 15 February 2010, Bank of Valletta plc announced a €50 million bond issue at a coupon of 4.8% per annum. The bonds have a final maturity date of 15 March 2020. The Issuer reserves the right to increase the amount up to a further €20 million in the event of over-subscription.

Coupon

4.8%

Amount issued

€50,000,000 (with an over-allotment option of up to a further €20,000,000).

Issue Price

100% (par)

Interest Payment

Semi-Annually on 15 March and 15 September.

Maturity

The bonds will mature at 100% (par) on 15 March 2020.

Closing date for Preferred Applicants

Wednesday 3 March 2010

General Public Offer Period

Monday 8 March 2010 to Friday 12 March 2010 (or earlier at the Issuer’s discretion)

Minimum application for bonds

Preferred Applicants: €2,000 and in multiples of €100 thereafter.

General Offer Stage: €2,000 and in multiples of €100 thereafter.

Listing

Official List of the Malta Stock Exchange

Use of Proceeds

The proceeds from this bond issue will be used by the Issuer to finance the redemption of the maturing 6.15% Subordinated Bonds due on 15 March 2010. Furthermore the proceeds will also serve to enhance BOV’s Tier II capital and will also be used to meet part of its funding requirements. BOV’s capital and liquidity positions already rank substantially higher than average European and US banking institutions and this new subordinated bond issue will further enhance its capital adequacy.

Downloads

Bank of Valletta plc – Securities Note

Bank of Valletta plc – Summary Note

Bank of Valletta plc – Authorisation to Apply Form

Should you be interested in obtaining a copy of our research note including our recommendation, kindly send us an email on info@rizzofarrugia.com.

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