Izola Bank announces €7,000,000 in secured notes due 2015
Izola Bank plc is issuing €7,000,000 in five-year secured notes of a nominal value of €1,000 issued at par and bearing an interest rate of 5.35 per cent per annum payable annually as from June 30, 2011. In the case of over-subscription, the secured...
Izola Bank plc is issuing €7,000,000 in five-year secured notes of a nominal value of €1,000 issued at par and bearing an interest rate of 5.35 per cent per annum payable annually as from June 30, 2011. In the case of over-subscription, the secured notes may be increased by another €2 million.
The proceeds from these secured notes will be principally used to support the general growth of the bank and specifically to further the bank's factoring and lending activities. A secured note is a bilateral lending agreement; the note represents a contractual obligation to lend and borrow money at a specified interest rate.
Izola Bank is a fully owned subsidiary of the Van Marcke trading and manufacturing group of Belgium. With a turnover of €400 million in 2008, the group operates in Belgium, France, the Netherlands, the US, Switzerland and Luxembourg. It was established in 1929 and currently employs over 1,600.
The Van Marcke Group is one of Europe's largest plumbing and heating wholesalers. It has other interests in manufacturing involving office and laboratory furniture and sanitary ware, and is engaged in a diverse range of sectors, including packaging, transportation, asphalt supply, road milling contracting and recycling of reclaimed asphalt.
Based in East Street, Valletta, Izola Bank was established in Malta in 1994, with a primary focus on providing cash management and treasury services to the Van Marcke Group. In recent years the bank expanded its customer base and provides internet banking services to customers in the Belgian and French markets. Last year the bank also launched fixed-term deposit products on the Maltese market.
"The response from Maltese customers to Izola Bank's first local products has been very positive and has exceeded the bank's own expectations. We are confident that Maltese investors react with similar enthusiasm to the Secured Notes issue," said Andrew Mifsud, general manager of Izola Bank.
Izola Bank Ltd is a licensed credit institution regulated by the Malta Financial Services Authority.
Copies of the Prospectus are now available from financial intermediaries. Subscriptions close on the morning of June 21.