‘A clear signal to the market’: BOV launches 5% unsecured bond issue of up to €100 million

Bank of Valletta (BOV) has just obtained regulatory approval from the Malta Financial Services Authority (MFSA) for the listing of an unsecured Euro Medium Term Bond Programme of up to €250 million and for the issuance of the first tranche of Bonds, which will be in the form of an issue of up to €100 million five per cent unsecured subordinated Bonds (2029-2034).

BOV CEO Kenneth Farrugia stated in a press release that the launch of this bond programme is “a clear signal to the market of the Bank’s confidence in its future growth strategy."

Mr Farrugia added that the bank will "continue to build on years of experience in the financial services industry, on the elevated customer experience that [the bank is] offering."

He went on to say that the bank renews its commitment to its customers, its people, and its stakeholders, "who continue to place their trust in the Bank".

"The issue of the Medium Term Bond Programme is another step in the Bank’s plans to strengthen its position as Malta’s Bank of Choice,” he concluded.

In the same press release, BOV Chairman Gordon Cordina stated that the “issue will support the Bank’s efforts to achieve its ambitious strategic plan, its medium and long term vision, and its commitment towards sustainable growth.

"We continue on our journey to sustain Bank of Valletta’s strong financial standing, strengthen our capital base and maintain a strong balance sheet, while at the same time offering value to the investor market and to our loyal shareholders and bondholders.”

€60 million in Bonds will be reserved for subscription by Bondholders and Shareholders of the Bank (holding specific Bonds and Shares as listed in the Final Terms) as well as employees of the Bank or any of its subsidiaries. Meanwhile, €25 million in Bonds will be reserved for subscription by professional clients and eligible counterparties, each as defined in the conduct of business rulebook issued by the MFSA, while the remaining €15 million in Bonds will be reserved for subscription by the general public, it added.

Applications will be accepted between and including 22nd October 2024 and 19th November 2024.

More information can be found here.