BoV outlines allotment policy for €70m bond issue

Bank of Valletta plc on Friday outlined the allotment policy for applications received for its €70 million 10-year 4.8% Subordinated Bonds which closed soon after opening last Monday.

The issue consisted of an offer of €50 million, with an over-allotment option of €20 million.

A total 1,712 applications from bondholders of the maturing 6.15% Subordinated Bonds 2010 were received, with a value of €27,704,500. These applications will be treated with preference and will be allotted in full.

The preferred allocation to maturing bondholders left €42,295,500 for allocation to applications received from the general public following opening of subscription lists.

By Monday, the bank had received a further 5,081 applications valued at €68,768,900. Applications up to €10,000 will be met in full. Applications over €10,000 will receive an allocation of 23.77 per cent.

Under this allocation policy, just under 75 per cent of applicants participating in the public offer will receive a full allotment.

Interest on the bonds begins to accrue from tomorrow. Allotment letters will be mailed and refunds of unallocated monies will be made by March 22.