While HSBC Bank Malta is due to announce its financial results for 2006 sometime next month, and is as such in its “closed season” in that it cannot discuss last year’s performance until an official announcement is made, the bank yesterday alluded it has seen continued and significant growth over 2006.
Speaking yesterday at the launch of an HSBC Bank Malta Lm20 million bond issue, Malta’s first bond issue of 2007, chief executive officer Shaun Wallis hinted that the bank is “extremely pleased” with the bank’s performance over 2006. HSBC yesterday launched a Lm20 million, or e46.6 million, bond issue maturing in 2017 at a rate of 4.6 per cent. The bonds will be able to be purchased in Maltese liri, euros or a combination of both with the same rate being applicable to either currency.
The issue is also subject to an over-allotment option of not more than Lm5 million, or e11.7 million.
“Given HSBC Malta’s global parentage, we believe this bond issue is attractively priced both in euro and Maltese liri, and gives local investors HSBC risk but with a Maltese premium,” Mr Wallis commented yesterday.
The offer will open on 18 January and will run until 25 January. Minimum applications are of Lm1,000, and thereafter in multiples of Lm100, or of a minimum of e2,500 and thereafter in multiples of E100.
Referring to the issue’s euro-lira mix, Mr Wallis explained: “It is also a statement of confidence in Malta’s convergence with and entry into the euro. The bond issue also comes at a time when the Maltese government is expected to be issuing less debt for investors than in previous years.
“We think it provides a good long-term investment opportunity for investors, particularly as we all move towards building pension funds for the future.
We are hopeful that this offer will be attractive to both small investors and institutions alike.”
The bank is seeking a listing for the bond on the Malta Stock Exchange, while Rizzo, Farrugia and Co. has been mandated to act as
sponsoring stockbrokers.
Like government stocks, the bond will pay out twice yearly and Mr Wallis confirmed the issue forms part of the bank’s normal general diversification of its balance sheet.