BNF Bank plc - Details of New Bond Issue

On 30 June 2022, BNF Bank plc published a Prospectus in relation to the issuance of up to €20 million 4.5% unsecured subordinated bonds maturing between 2027 and 2032. The salient details of the new bond issue are as follows:

Amount Offered:

Up to €20 million (nominal)



Issue Price:

100% (par)

Interest Payment Date:

Annually on 29 July (first interest payment date is 29 July 2023)

Maturity Date:

The bonds will mature on 29 July 2032. However, BNF Bank reserves the right to redeem any or all of the bonds on any one of the following Early Redemption Dates subject to giving bondholders at least 30 days’ notice: 29 July 2027, 29 July 2028, 29 July 2029, 29 July 2030, or 29 July 2031.


The bonds will constitute the general, direct, subordinated, unsecured and unconditional obligations of BNF Bank, and will at all times rank pari passu, without any priority or preference among themselves. Since the bonds are subordinated, in the event of dissolution and winding up of the Bank, the claims of bondholders in respect of the payment of capital and interest on the bonds will be subordinated to the claims of all depositors and other unsubordinated secured and unsecured creditors of the Bank, and if the assets of the Bank are insufficient to enable the Bank to repay the claims of more senior-ranking creditors in full, the bondholders will lose their entire investment in the bonds. If there are sufficient assets to pay the claims of senior-ranking creditors in full but insufficient assets to pay claims in respect of the bonds and all other claims that rank pari passu with the bonds, bondholders may lose some (which may be substantially all) of their investment in the bonds. The same principles would apply in the case of a resolution where the resolution authorities will apply the powers of write-down and conversion of capital in a way that respects the pari passu treatment of creditors and the statutory ranking of claims under the applicable insolvency law.

Use of Proceeds:

The proceeds will make up a fundamental part of the Bank’s capital plan that will qualify as Tier 2 Capital in terms of the Capital Requirements Regulation (CRR) and will be used by the Bank to sustain its medium-term growth strategy.

Offer Period:

7 July 2022 to 22 July 2022

Minimum Subscription Amount:

€10,000 and in multiples of €100 thereafter. Interested applicants are kindly requested to contact us for further information on the detailed application procedure.


Official List of the Malta Stock Exchange


The value of investments may increase as well as decrease and past performance is not an indication of future performance. Prospective investors are urged to read the Prospectus issued by BNF Bank plc dated 28 June 2022 including the ‘Risk Factors’ found in Section 1 of the Prospectus. Prospective investors are required to consult an independent financial adviser for advice prior to investing in the bonds.


Prospectus dated 28 June 2022

Bond Issue Fact Sheet

Investor Presentation



This webpage has been prepared based on the Prospectus dated 28 June 2022 issued by BNF Bank plc, and no representations or guarantees are made by Rizzo, Farrugia & Co. (Stockbrokers) Ltd with respect to the accuracy of the data. This webpage is for information purposes only. It is NOT intended to be and should NOT be construed as an offer or solicitation to acquire or dispose of any of the securities or issues mentioned herein. Rizzo, Farrugia & Co. (Stockbrokers) Ltd accepts NO responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this webpage.

Investors wishing to acquire the Bonds should read the Prospectus before making any investment decision in order to fully understand the potential risks and rewards associated with an investment in the Bonds. A copy of the Prospectus is available on Rizzo, Farrugia & Co. (Stockbrokers) Limited’s website. The Bonds are COMPLEX financial instruments and investment in the Bonds may not be suitable for all investors. Prospective investors are required to consult their financial advisers as to the suitability or otherwise of acquiring such Bonds. The value of the investment and the income therefrom may go down as well as up and investors may lose some or all of the money invested.

This advertisement has been issued by Rizzo, Farrugia & Co. (Stockbrokers) Limited, a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta, and having its registered address at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta