Bank of Valletta introduced a 10-year subordinate bond issue this week of e35 million with a coupon of 5.35 per cent per annum. The 10-year subordinated bond issue closely follows the recent announcement of BOV’s financial results for the first six months of the current financial year.

BOV’s chief executive officer Tonio Depasquale gave an overview of the bond issue and outlined its objectives, explaining how the bond issue aims to further strengthen the bank’s capital base.

“As the largest financial services provider in Malta, BOV gives top priority to prudent and efficient asset and liability management. Its capital adequacy and liquidity ratios rank with the strongest banks in Europe and through this bond issue, BOV is ensuring that it will remain ahead of the curve,” he explained.

A proportion of the issue is being reserved for the bank’s shareholders and employees and for any pre-placements made by the public.

All preferred applications and other pre-placements will be accepted until 4 June and the opening of subscription lists to the public will be made on 8 June.

The bond interest is payable semi-annually on 15 June and 15 December and the bond fully matures in June 2019.

An overallotment option of up to e15 million is also available.