Oversubscribed €150M bond issue ‘a testament to solid fundamentals and strategic vision’ – BOV CEO

BOV Chief Executive Office (CEO) Kenneth Farrugia says the rapid oversubscription of both the initial bond and the overallotment option is “a testament to our solid fundamentals, prudent capital management and strategic vision aimed at sustaining long-term growth.”

His comments were made to MaltaCEOs.mt, following the traditional ‘Ringing of the Bell’ event held at the Malta Stock Exchange. In May BOV announced the bond issue, with an overallotment option that saw the final figure increase to €150 million. Within days of its launch, the bonds were fully subscribed to.

Mr Farrugia says the strong demand reflects the confidence that institutional and retail investors continue to place in Bank of Valletta.

“In fact,” he continues, “the bank exercised the overallotment option, and still the bond issue of €150 million was oversubscribed. 

He adds that the bell-ringing ceremony, often considered a symbolic gesture in the financial world, took on deeper meaning for BOV.

“Today’s ringing of the bell is not just a symbolic moment – it reaffirms BOV’s position as a trusted partner in Malta’s financial market and underscores our ongoing commitment to deliver value to our stakeholders.”

Chief Financial Officer Kevin Cardona also highlights the transaction’s impact on BOV’s capital strength.

“This successful issue further strengthens the bank’s total capital adequacy and MREL positions, ensuring we remain well-positioned to support the evolving needs of our customers and the Maltese economy,” he shares in comments to this newsroom.

He concludes: “The strong subscription rate within a short timeframe highlights investor trust in the bank’s financial soundness and future direction. I would also like to acknowledge the dedicated efforts of our Capital Issuance and Capital Markets teams, who played a crucial role in the execution of this important transaction, as well as our front-liners.”

The bond issue was led by Romeo Cutajar, Head of Capital Issuance and Optimisation, and Mark Scicluna, Head of Capital Markets, whose teams were instrumental in ensuring the successful execution of this second tranche.