Lombard Bank Malta plc - Clarification re Outcome of EGM

On 25 November 2022, Lombard Bank Malta plc issued a clarification in relation to the outcome of the Extraordinary General Meeting (“EGM”) which was held on 10 November 2022. In this respect, Lombard explained that immediately upon the conclusion of the EGM, the Bank received a letter from the National Development & Social Fund (“NDSF”), the contents of which were reflected in a media release also issued by the NDSF on the same date, seeking to provide context as to the manner in which the NDSF voted during the EGM.

While noting the contents of these communications, Lombard reiterated its belief that the approval of the EGM Resolution allowing it to proceed with a Rights Issue remains the most appropriate means of raising capital for the Bank, in the best interests of the Bank and all its stakeholders. This was also highlighted by the Bank’s Chairman during his address to the EGM. The objective of the Rights Issue is to increase the Bank’s capital by circa €50 million which would enable Lombard to ensure compliance going forward with applicable regulatory capital requirements as well as enable further growth of the Bank in line with its revised strategy.

In light of media reports which have been and may yet be published, Lombard also noted that contrary to what is suggested in such media reports, the Bank was not, prior to the EGM, ever in receipt of a letter from the NDSF informing the Bank of its objection to a new share issue nor of its intention to object to the Resolution and/or the eventual Rights Issue.

Lombard concluded by explaining that it is currently evaluating its position so as to determine the way forward, always in adherence with all applicable laws, rules and regulations and in the best interests of the Bank and all its stakeholders. As a result, further announcements will be made in due course as and when necessary.