Bank of Valletta announced the offer to the public of a maximum amount of €50 million 3.50% Subordinated Notes maturing in 2030. Details of the offer to the public can be found in the Prospectus, Supplement and Final Terms, which, together with the application forms, are available from Bank of Valletta branches and other authorised financial intermediaries.
Speaking about the offer, the Bank's CEO Mr Mario Mallia stated that this offer is an integral part of the Bank's Subordinated Debt Issuance Programme, which is aimed at further strengthening the Bank's tier 2 capital. "Bank of Valletta has evolved over the years to become a fully-fledged financial services provider. Accordingly, the Bank's top priority is to strengthen its capital base by increasing both its tier 1 and tier 2 capital. This will ensure that every line of business of the Bank is well supported by adequate levels of capital."
The Notes being offered by the Bank consist of two tranches (one in each of Series 1 and Series 2) which will be fungible with the first two tranches of Series 1 and Series 2 issued by the Bank last December. Over 2,600 applications were received in respect of the first two tranches resulting in an oversubscription of over €38 million. Since there were a number of applicants whose applications were scaled down as a result of the over-subscription, the Bank has reserved a specific amount of Notes in the fungible tranches for such investors.
The joint sponsors to the Programme are Rizzo, Farrugia & Co. (Stockbrokers) Ltd and Jesmond Mizzi Financial Advisors Ltd. Application has been made for the Notes to be listed on the Official List of the Malta Stock Exchange.
The Notes are complex financial instruments and may not be suitable for all types of retail investors. The Notes are subordinated and unsecured. The value of investments may increase as well as decrease. Past performance is not an indication of future performance. The full prospectus outlines the risk factors relating to this issue which a prospective investor should be aware of. Prospective investors should seek professional advice by consulting a licenced financial intermediary before investing in the Notes.