HSBC Bank Malta plc - MREL Loan

On 27 January 2023, HSBC Bank Malta plc announced that it entered into a 4-year unsecured €30 million loan agreement with HSBC Continental Europe to enable the bank meet the minimum requirement for own funds and eligible liabilities (‘MREL’) as set by the Single Resolution Board. The loan has an option of early repayment as from the third year and bears interest at a rate equal to 3-months EURIBOR plus a margin of 127 basis points which currently results in an effective rate of around 3.77%.

The bank explained that this loan further strengthens the Bank’s capital position and follows the 10-year unsecured €60 million MREL loan agreement that it had entered into in December 2021.