Mario Mallia, Bank of Valletta’s CEO, has described the bank’s rights issue, as “a very important milestone for the BOV Group”.

Mr Mallia said: “The new shares to be issued will enable the bank to further strengthen its common equity tier 1 (CET1) capital. This would mean that the bank will be in a better position to implement its strategic initiatives and to have the necessary capital buffers required to take these forward. The proceeds from the rights issue will also be used by the bank to meet its general funding purposes.”

BOV announced that it will be offering 105,000,000 new ordinary shares to its existing shareholders on the basis of a ratio of one new ordinary share for every four ordinary shares held at an offer price of €1.43 per new ordinary share. Existing shareholders may assign part or all of their rights to third parties. Employees and other investors are being given the opportunity to apply for any new shares not taken up by either existing shareholders or their assignees.

All categories of investors may apply for the new shares during the offer period between November 8 and December 6, through BOV branches and other authorised financial intermediaries as listed in annex 1 of the prospectus dated October 30 relating to the new shares (the ‘Prospectus’).

BOV will not be providing investment advice or discretionary investment management services in relation to the new ordinary shares but will be accepting forms from investors on an ‘execution-only’ basis.

Further information on the new shares may be obtained from the prospectus, copies of which are available during office hours, from BOV branches and other authorised financial intermediaries. The prospectus may also be downloaded from the BOV website (www.bov.com).

The value of investments may increase as well as decrease and past performance is not an indication of future performance. Prospective investors are urged to read the Prospectus with particular reference to the sections entitled ‘Risk Factors’ as contained therein. Prospective investors should seek independent financial advice before deciding to invest in the new shares.  BOV is licensed by the MFSA.