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NEW BOND ISSUE – Bank of Valletta 3.50% Subordinated Notes 2030 Tranche 1

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Bank of Valletta Plc has announced the issue of € 75 million in Subordinated Notes maturing in 2030 and featuring an annual coupon of 3.50%. The new Notes will be issued in any one or any combination of the following Series:

  • Series 1 – Minimum investment € 25,000
  • Series 2 – Minimum investment € 5,000

The Notes are complex financial instruments and may not be suitable for all types of retail investors (please refer to Important Notice and full Prospectus).

In addition, the Company has announced its intention to reserve up to 53.33% of the total issued Notes, amounting to € 40 million, for Preferred Applicants: shareholders of Bank of Valletta, Directors of Bank of Valletta, and Employees of Bank of Valletta. The remaining 46.67% of the total issued Notes, amounting to € 35 million, will be opened for subscription to members of the General Public.

Bank of Valletta Plc. (ISSUER)

Bank of Valletta Plc. is a publically listed diversified bank, and the largest credit institution in Malta. As such the bank is mainly focused on providing retail and corporate banking services to local and international customers. The bank is also the major mortgage lender on the Island, covering both the residential and the commercial real estate segment of the market.

BOV Group (GROUP ENTITY)

BOV Group is the parent and holding company of Group, managing both the Group banking operations, throughout its Bank of Valletta Plc subsidiary, and its Fund Management and Fund Administration businesses throughout two independent units: Valletta Fund Management Ltd and Valletta Fund Services Ltd.

BOND ISSUE OVERVIEW

Issuer:                                                            Bank of Valletta Plc

Aggregate amount:                                         €75,000,000

Coupon:                                                          3.50% per annum

Face Value Denomination:                               €100

Issue Price:                                                      €100 (par)

Maturity:                                                          08 August 2030

Call Option Dates                                             N/A

Interest payment date:                                 08 February and 08 August 2016, and on the same days thereafter until maturity in 2022

Minimum Investment:                                  Series 1 – €25,000 and multiple of €100 thereafter

                                                                   Series 2 – €5,000 and multiple of €100 thereafter

Additional Important Notes:                       Series 1’s subscriptions will require any successful applicant to maintain, at all time, a minimum balance of €25,000 even once the Notes are admitted to trading on the secondary market at the Malta Stock Exchange

The Company intends to use the net proceeds of the sale of the newly issued Notes to further strengthen the Issuer’s tier 2 capital requirements imposed by the European Banking regulations. Furthermore, part of the net proceeds will be used to meet the bank’s general financing requirements.

Deadline for Submission of Applications

  • 30th November 2015 – Deadline for all Preferred Applications
  • 02nd December 2015 – Deadline for the General Public Applications

A copy of the Full Prospectus is available here.

For more information please contact us on 25 688 688 or [email protected].

IMPORTANT NOTICE

The Notes are complex financial instruments and may not be suitable for all types of retail investors.

To evaluate suitability the financial adviser needs to assess the below key areas on behalf of potential investors

1.       the potential investor’s  knowledge and experience to understand the related risks

2.       the Notes meet the investment objectives of the potential investor

3.       the potential investor is able to bear the investment and financial risks

Experienced investors, who are not seeking financial advice, will still need to demonstrate that they are familiar with these type of complex financial instruments by disclosing their knowledge and investment experience prior to placing orders