Bank of Valletta plc - Details of Tranche 1 of Bond Issuance Programme

On 11 October 2024, Bank of Valletta plc published a Base Prospectus and Final Terms following regulatory approval for the admissibility to listing on the Official List of the Malta Stock Exchange of up to €250 million Unsecured Euro Medium Term Bond Programme. Tranche 1 consists of the issuance of up to €100 million 5.0% unsecured subordinated bonds maturing between 2029 and 2034. The salient details of Tranche 1 of the bond issuance programme are as follows:

Amount Offered:

Up to €100 million (nominal)

Coupon:

5.00%

Issue Price:

100% (par)

Interest Payment Date:

Annually on 28 November (first interest payment date is 28 November 2025)

Maturity Date:

The bonds will mature on 28 November 2034. However, Bank of Valletta plc reserves the right to redeem any or all of the bonds on any date between 28 November 2029 and 28 November 2034 subject to MFSA approval and also giving bondholders at least 30 days’ notice. The Bank may in an exceptional event also redeem the bonds during the first five years of the bond as detailed in the Base Prospects and Final Terms.

Status:

The Bonds are Tier 2 Bonds and constitute direct, unsecured and subordinated obligations of the Issuer, which will at all times rank pari passu without any preference among themselves. In a dissolution and winding up of the Bank, the claims of Bondholders in respect of the Bonds will be subordinated to the claims of all depositors and other unsubordinated secured and unsecured creditors of the Bank and will not be repaid until all other unsubordinated debt outstanding at the time has been settled in full. In the event of a resolution of the Bank or in any other instances under applicable law, the Bonds are subject to conversion or write down by the applicable resolution authorities as provided by law.

Use of Proceeds:

The net proceeds from the Bonds to be issued under these Final Terms will be used to further strengthen the MREL and/or capital base of the Group, as the case may be, which will allow the Issuer to increase its lending book and expand the investment horizon of its proprietary investments, and for the general financing purposes of the Group.

Offer Period:

22 October 2024 to 19 November 2024 at noon (or earlier at the discretion of the Issuer)

Minimum Subscription Amount:

Retail Investors: €10,000 and in multiples of €100 thereafter.

Professional Clients and Eligible Counterparties: €100,000 and in multiples of €100 thereafter.

Plan of Distribution:

  • An amount of up to €60 million will be reserved for subscription by Preferred Applicants, which are holders of the 3.50% BOV subordinated bonds 2030 (Series 1 & 2), 3.75% BOV subordinated bonds 2026/31, and shareholders of BOV as at close of trading on 9 October 2024, together with employees of the Bank and any of its subsidiaries.
  • An amount of up to €25 million will be reserved for subscription by Professional Clients and Eligible Counterparties.
  • The remaining €15 million will be reserved for subscription by the general public.

Any portion not fully subscribed to by a particular pot will be made available for subscription to another pot.

Application Procedure:

Interested applicants are kindly requested to contact us for further information on the detailed application procedure.

Listing:

Official List of the Malta Stock Exchange

Downloads:

Base Prospectus dated 11 October 2024

Final Terms dated 11 October 2024

Fact Sheet dated 15 October 2024

 

Disclaimer:

This webpage has been prepared based on the Base Prospectus and Final Terms both dated 11 October 2024 issued by Bank of Valletta 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 Base Prospectus and Final Terms 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 Base Prospectus and Final Terms 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.

Rizzo, Farrugia & Co. (Stockbrokers) Ltd is acting as Joint Sponsor to Bank of Valletta plc.

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