BOV to open representative office in Egypt

Bank of Valletta yesterday signed a €100 million syndicated term loan facility.

The Mandated Lead Arrangers and Underwriters of this facility are Bayerische Landesbank and Sumitomo Mitsui Banking Corporation Europe Limited.

The facility was launched at a level of €70 million but attracted commitments in excess of e100 million and the issue was increased to this level. It will refinance a e70 million facility signed in July, 1998, and will be used for general corporate purposes.

The facility is structured to include a reduction in the interest margin when lenders are permitted to assign a 20 per cent risk asset weighting to the loan following Malta's accession to the EU in May.

The signing of the term loan facility was announced during a commemorative luncheon held at the San Gorg Corinthia Hotel attended by finance ministry parliamentary secretary Tony Abela.

BOV chairman Joseph F.X. Zahra said: "When we decided to raise a new syndicated loan, we planned to target the amount of 70 million euros. In my view, the market's overwhelming response, with participation well in excess of that figure, reflects largely the good standing of the Bank of Valletta's name in the market, and equally the standing of the banking system in Malta."

Mr Zahra said BoV was preparing for the single market.

It had continued to invest in IT systems by rolling out a number of internet and telephone banking solutions which are serviced by a state-of-the-art customer call centre.

"Other initiatives have been taken on board, including the consolidation of our Euro Mediterranean Strategy through the opening of two representative offices in Tunisia and Libya, and shortly, a representative office in Egypt," he said.