BOV announces 4.80 per cent 10-year bond issue

Bank of Valletta has received regulatory approvals in relation to the issue of €50 million subordinated bonds with a coupon of 4.8 per cent redeemable in 2020, with a nominal value of €100 per bond issued at par, and subject to an over-allotment option of up to €20 million.

Speaking about the Bond Issue, BOV CEO Tonio Depasquale said:

“This bond issue is aimed at strengthening further the bank’s solid capital base.

“It follows the recent affirmation of the bank’s strong credit rating by FITCH, who cited the bank’s robust capital and liquidity, the improving quality of its loan book and its prudent business model.”

Mr Depasquale added that “the continued focus on the bank’s capital strength, its liquidity position, and its depositor and investor base will continue enabling the bank to thrive in an environment which continues to be challenging.”

The terms of the bond issue include a preference to the holders of the 6.15 per cent BOV Subordinated Bonds on the register of holders yesterday.

Full details on the 2020 bonds are available in the Securities Note and Summary Note dated February 12, 2010 supplementing the prospectus dated May 20.

These notes, together with the prospectus, will be available on the BOV website (www.bov.com) from Monday. Application Forms will be available from all BOV Branches and other authorised Financial Intermediaries detailed in Annex 1 of the Securities Note from February 19.