Bank of Valletta said last Friday it had formally requested listing approval for a forthcoming €50 million bond issue, which will have an over-allotment option of up to €20 million. The issue will consist of 4.8% subordinated bonds redeemable in 2020.

It is the largest corporate bond issue ever in Malta, analysts told The Sunday Times.

In a company announcement on the Malta Stock Exchange, the bank said the proceeds of the issue will be used to finance the redemption of the 6.15 per cent BoV Subordinated Bonds 2010 maturing on March 15, to further strengthen its Tier II capital, and for the bank's general financing requirements.

Holders of the maturing bonds who indicate their willingness to surrender part or all of their existing holding by next Thursday will be given preference.

The last trading day to obtain eligibility to this preference was last Friday.

Applications from maturing bond holders to surrender their existing holdings for the 2020 bond issue must be received by financial intermediaries by March 3. The maturing bonds will become ex-dividend on February 23. The last trading day available for eligibility to the final interest payment is February 17.

The bank said a request will be filed to suspend trading in the maturing bonds after March 3 to enable arrangements for the redemption and/or roll-over of these bonds to be finalised.

Further information on the new bond issue will be available at www.bov.com on February 15, subject to approval.