Bank of Valletta is issuing the second series of Bonds under the €250 million Unsecured Euro Medium Term Bond Programme, approved by the MFSA in October 2024. The first tranche of Bonds under this programme was issued in November 2024. The offer period will open on June 9, 2025, and will close on June 27, 2025 or earlier in case of over-subscription.
Series 2 includes an initial issuance of €100 million, with an overallotment option up to a maximum amount of €50 million in the event of oversubscription. The Bond's status is Unsecured Subordinated - Tier 2, with bail-in clauses included. It will mature in 10 years and may be redeemed on any date between the fifth anniversary of the issue date and the maturity date. Interest will be paid annually at the rate of 5%. The issue price is set at par value.
The first €100 million includes an allocation of 50% of the issue for subscription by existing shareholders, bondholders, and BOV Group employees (as defined in the Final Terms), whilst 35% is reserved for professional and institutional investors, with the remaining 15% reserved for the general public. Any portion of the individual planned allocations not taken up will be transferred to another allocation. Moreover, in the event of oversubscriptions - up to a maximum of €50 million - these will be allocated at the discretion of the Bank. Should the amount applied for exceed €150 million, applications will be scaled down in accordance with the allocation policy adopted by the Bank, subject in all cases to a minimum allocation of €10,000 per applicant.
Dr. Gordon Cordina, Chairperson of BOV, expressed his satisfaction at the issuance of the second series of the €250 million unsecured Euro Medium Term Bond Programme. He stated, "The resounding success of the first tranche highlights the confidence that both investors and the public have in the Bank. This Bond supports our efforts to strengthen the Bank's capital base and maintain a robust balance sheet, all while enhancing the value we provide to the investor market and our loyal shareholders and bondholders."
CEO Kenneth Farrugia reiterated the Chairperson's comments, emphasising, "This Bond issue is a critical instrument in our strategy to enhance the Bank's capital base and support our ambitious growth plans. It forms part of the initiatives announced earlier this year, aimed at creating value for all stakeholders. These include a proposed bonus share issue, as well as a share buyback initiative that is still subject to regulatory approval. These strategic moves, combined with the issuance of this Bond, firmly reinforce the Bank's position as Malta's Bank of Choice and demonstrate our unwavering dedication to delivering sustained value to our investors, shareholders, and clients."
Applications are subject to a minimum subscription amount of €10,000 with incremental amounts in multiples of €100. Professional clients and institutional investors are subject to a minimum of €100,000. An application has been made for the Bonds to be listed on the Official List of the Malta Stock Exchange. They will be listed on the Malta Stock Exchange on 14 July 2025, and trading can commence on 15 July 2025. These dates may be anticipated if the issue closes earlier.
The bond is not simple and may be difficult to understand. More information is to be found in the Base Prospectus and Final Terms document, which will be available for download from https://www.bov.com/bond-prospectus as from June 2, 2025. Printed copies of the Final Terms will be available from Authorised Financial Intermediaries as from June 9, 2025. Applications for Bonds submitted by retail clients are subject to a suitability test.