Bank of Valletta is launching a 10-year subordinated bond issue of €35 million, with a coupon of 5.35 percent per annum, interest payable in June and December.

The bonds mature on the June 15, 2019. There is also an over-allotment option of up to €15 million.

Chief executive officer Tonio Depasquale told a news conference the issue aimed to further strengthen the bank’s capital base.

This issue, he said, formed part of the bank’s proactive capital management process which entailed periodic consolidation of its regulatory capital, in anticipation of future internal and external requirements.

“As the largest financial services provider in Malta, Bank of Valletta gives top priority to prudent and efficient asset and liability management.

“Its capital adequacy and liquidity ratios rank with the strongest in Europe and through this bond issue, Bank of Valletta is ensuring that it remains ahead of the curve,” Mr Depasquale said.

The issue closely follows the recent announcement of the bank’s financial results for the first six months of this financial year.

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

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

Further information can be obtained from any of the bank’s branches.