FIMBank, the Malta-based international banking group, last week announced the issue of 7% Subordinated Bonds maturing 2012-2019. The issue will be of e15 million subject to an over-allotment option of another e15 million, and investors may subscribe for the bonds which may be denominated in EUR and/or US dollar.

At a meeting with the media, Margrith Lütschg-Emmenegger, president of the FIMBank Group, noted that this announcement comes barely a week after the group reported a record financial performance for the year ended 31 December 2008. The FIMBank Group posted significant increases in its operating income and activity base to register an after-tax profit of $24.8 million (2007 – $10.5 million).

While the record results were clearly helped by the realised gain on the disposal of the shareholding in Global Trade Finance Limited, India in March, the main operating income contributors nevertheless performed robustly, and had the GTF disposal not taken place, the group would still have reported a strong profit result.

The audited accounts the FIMBank Board of Directors approved in Cairo also show that equity increased by 19 per cent to $117 million, total assets increased by nine per cent to $624 million while liquidity and capital adequacy ratios are strong and above the minima required by regulations.

The bonds shall be offered and issued to the general public at their par value of e100 and $100, respectively. However, shareholders, as well as directors and employees of the group, will be rewarded for their loyalty and entitled to subscribe for the bonds at a discount of three per cent, namely e97 and/or $97, and will have their application guaranteed for the first e10,000 or $10,000. Other innovative features of the bond issue include the intention that FIMBank will pay the semi-annual interest on the bonds in cash or by the issue of new shares, at the bondholder’s option.