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4.25% FIMBank 2013 – New Bond Issue


FIMBank are issuing Eur25,000,000 worth or bonds with an over allotment option of Eur10,000,000. The bonds have a yield to maturity of 4.25% and mature in 3 years. An investor may apply for this bond in either Euros or Dollars.

To view the prospectus, please click here

To view the summary note, please click here

An application form for this issue is available here

Bond Details
Coupon 4.25%
Denomination EUR
Issue Price Par (100)
Size of Issue €25 Million (over allotment of a further 10 million)
Interest Payment Dates 31st May,  31st November
Maturity Date 30th November 2013
Listing Malta Stock Exchange
Minimum Application Size €2,000 or $2,000  (Multiples of 100)
Preferred Applicants minimum €6,000 or  $6,000
Timetable
Pre Placement Closing Date 22nd October 2010
General Offer Period 25th October 2010 to 29th October 2010
Announcement of Basis of Acceptance 5th November 2010
Commencement of Interest on Bonds 5th November 2010
Expected Dispatch of Allotment Advices 12th November 2010
Refund of unallocated monies 12th November 2010
Admission to Listing 17th November 2010

Activities of the Issuer

The FIMBank Group of Companies comprises of FIMBank p.l.c. and its wholly owned subsidiaries. The Bank is principally active in providing international trade finance and to act as an intermediary to other financial institutions for international settlements, forfaiting, factoring and loan syndications. The Bank is licensed as a credit institution by the MFSA.

Use of Proceeds

The net proceeds from the issue of the Bonds will be applied by the Issuer in supporting the general funding requirements of the Issuer and the Group, more specifically the kind of business that tends to have a maturity cycle longer than 1 year. This is because the core business of the Issuer, i.e. cross-border trade finance mainly with emerging markets, has been developing in such a way that transaction maturities, especially the more structured transactions, are growing longer, sometimes up to 3 years. Therefore, the proceeds of the Bonds are intended to provide funding support for this longer-dated business of the Issuer. On the other hand, the 2009 issue of the 2012-2019 7% Subordinated Bonds was part of a wider and longer term capital development plan, intended to support the investment strategy into new ventures, markets and undertakings. Proceeds from the 2009 issue have to date been utilised in setting up the Indian (India Factoring and Finance Solutions Private Limited) and Russian (CIS Factors Holdings BV) entities and for other similar strategic projects currently in the pipeline. Unlike that issue, the new Bonds will not constitute Additional Own Funds (Tier II capital) forming part of the Issuer’s Own Funds in terms of the Own Funds Rule (BR/03). Furthermore, the proceeds of the Bonds will not be used for the purchase of any property or buildings that would house the Group’s offices, whether in Malta or elsewhere.

Security

The Bonds shall constitute the general, direct, unconditional and unsecured obligations of the Issuer and shall at all times rank pari passu, without any priority or preference amongst themselves and equally with any other present or future, unsecured indebtedness of the Issuer but will rank prior to the subordinated debts of the Issuer. The Issuer does not have any privileges and hypothecs in favour of third parties. The Issuer may incur further borrowings or indebtedness and may create or permit to subsist other security interests upon the whole or any part of its present or future undertakings, assets or revenues (including uncalled capital). Any security interests so created will rank in priority to the Bonds for so long as such security interests remain in effect.

Underwriting 

The Bond Issue is not underwritten.

More Information

For more information and/or for advice on whether this bond is suitable for inclusion in your investment portfolio, prospective investors may contact us on +356 25 688 688,  via email on [email protected], alternatively you may contact us by clicking here