Izola Bank has outlined its allotment policy after its €7 million five-year secured notes issue was oversubscribed by more than 59 per cent.

Subscriptions in excess of €14 million were received and the issue was increased by the €2 million over-allotment amount to total €9 million.

The Valletta-based bank's allotment policy will see subscriptions not exceeding €2 million met in full, and subscriptions in excess of €2 million satisfied by the allocation of €2 million and a further 39.32 per cent of the remaining balance, rounded down to the nearest thousand.

Interest on the notes began on Monday. The notes are expected to be listed on the Malta Stock Exchange by tomorrow and trading will start on Wednesday.

The proceeds from these secured notes will be principally used to support the bank's general growth and to further its factoring and lending activities.

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 sanitary ware 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.

Izola Bank was established in Malta in 1994, with a primary focus on providing cash management and treasury services to the Van Marcke Group.