HSBC Bank Malta announced that it is offering Lm20 million or e46,600,000 in 4.6 per cent per annum subordinated bonds redeemable in 2017; the same rate is payable in either currency.

The Bond Issue is subject to an over-allotment option not exceeding Lm5 million or e11,700,000 in aggregate. These can be purchased either in Maltese lira or in euros, or a combination of both. The nominal value of the bonds on offer will be repayable in full upon redemption.

Applications can be made for a minimum of Lm1,000 and thereafter in multiples of Lm100 or for a minimum of e2,500 and thereafter in multiples of e100. The offer will open from Thursday 18 until Thursday 25 January 2007. The offer may close earlier, without prior notice, if fully subscribed.

“Given HSBC’s Malta global parentage, we believe this bond issue is attractively priced both in euro and Maltese lira and gives local investors HSBC risk but with a Maltese premium. It is also a statement of confidence in Malta’s convergence with and entry into the euro. The bond issue also comes during a year when the Maltese government is expected to be issuing less debt for investors than in previous years,” said HSBC Bank Malta’s chief executive officer, Shaun Wallis. “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,” Mr Wallis added.

The bank has lodged an application for the listing of the bonds on the Malta Stock Exchange. Rizzo, Farrugia and Co. has been mandated to act as sponsoring stockbrokers.

More information can be found in the prospectus dated 10 January. The prospectus and application forms can be obtained from any HSBC branch, ShareShops or its authorised distributors.

One can also call the bank’s Customer Service on 2380 2380 or visit HSBC’s website www.hsbc.com.mt.