Bank of Valletta is launching a 10-year subordinated bond issue of €35 million, with a coupon of 5.35 per cent per annum, interest payable semi-annually on 15 June and 15 December. The bonds mature on the 15 June 2019. There is also an over allotment option of up to €15 million.
This was announced by Tonio Depasquale, Chief Executive Officer of the Bank of Valletta Group during a press conference held this morning at the BOV Centre in St Venera. Mr Depasquale gave an overview of the bond issue and outlined its objectives. “We are pleased to announce this 10-year subordinated bond issue that aims to further strengthen the Bank’s capital base. This bond issue forms part of Bank of Valletta’s proactive capital management process which entails periodic consolidation of its regulatory capital, in anticipation of future internal and external requirements.
“As the largest financial services provider in Malta, Bank of Valletta gives top priority to prudent and efficient asset and liability management. Its capital adequacy and liquidity ratios rank with the strongest in Europe and through this bond issue, Bank of Valletta is ensuring that it remains ‘ahead of the curve’. Furthermore, the Bank also seeks to optimise the mix between its Tier 1 and Tier 2 capital,” concluded Mr Depasquale.
The 10-year subordinated bond issue closely follows the recent announcement of Bank of Valletta’s financial results for the first six months of the current financial year. The Bank has continued to provide credit and liquidity to the Maltese economy, notwithstanding the challenging market conditions. This ‘business as usual’ approach to banking has ensured that Bank of Valletta continues to play a key role in the local economy.
A proportion of the issue is being reserved for the Bank’s shareholders and employees and for any pre-placements made by the general public. All preferred applications and other pre-placements will be accepted until 4 June 2009 and the opening of subscription lists to the general public will be made on the 8 June 2009. Further information can be obtained from any of the Bank’s Branches, by calling the Customer Service Centre on 21312020, visiting the Bank’s website www.bov.com and from leading stockbrokers.