HSBC announced the allocation policy for its Lm20 million bond issue, offered in both Maltese liri and euro, which was over-subscribed within hours of opening of subscriptions. The bank has exercised the over-allotment option of a further Lm5 million, bringing the total bond issue to Lm25 million.

Public offer applications up to a value of Lm3,000 on the Maltese Lira Bond and e5,000 on the euro denominated bond will be accepted in full. In the case of applications over Lm3,000, the first Lm3,000 will be met in full, while 36.45 per cent of the remaining amount will be met. In the case of applications over e5,000, the first e5,000 will be met in full, while 26.6 per cent of the remaining amount will be met. The allocation is to be rounded down to the nearest Lm/e 100.

Refunds on the bonds where applicable will be made through direct credit into the applicant’s bank account. Interest on the bonds commenced as from 25 January. The bonds were listed on the Malta Stock Exchange on 2 February and trading will commence tomorrow.