BOV launches 4.80% 10-year bond issue

Bank of Valletta has issued €50 million subordinated bonds with a coupon of 4.80 per cent redeemable in 2020, with a nominal value of €100 per bond issued at par and subject to an over-allotment option of up to €20 million.

Tonio Depasquale, chief executive officer of Bank of Valletta Group said the bond issue was aimed at further strengthening the bank's solid capital base and followed the recent affirmation of the bank's strong credit rating by Fitch, which cited the BOV's "robust capital and liquidity, the improving quality of its loan book and its prudent business model".

Mr Depasquale added that the continued focus on the bank's capital strength, its liquidity position and its depositor and investor base would continue enabling it to thrive in an environment that continued to be challenging.

The terms of the bond issue include a preference to the holders of the 6.15 per cent BOV subordinated bonds on the register of holders as at February 11. Full details on the 2020 bonds are available in the Securities Note and Summary Note bearing yesterday's date, supplementing the prospectus of May 20, 2009. The notes and the prospectus will be available on the BOV website (www.bov.com) from Monday.

Application forms will be available from all BOV branches and from authorised financial intermediaries detailed in Annex 1 of the Securities Note from Friday.