Izola Bank plc has announced a €14 million unsecured subordinated bond issue with an annual interest rate of 5% and a nominal value of €100 per bond at par.
The bond issue will mature on September 15, 2032, but may be redeemable at the bank’s discretion on any date falling between September 15, 2027 and September 14, 2032. The bonds will form part of the bank’s capital and as such, Izola Bank will use the bond issue funds to help sustain its growth strategy.
Existing bondholders of the 4.5% Izola Bank plc unsecured bonds 2025 (ISIN MT0000531211) are being invited to subscribe to the bonds in exchange for their existing holding at a 2.5% premium over par value (that is, at €102.50). The bond issue will open for subscriptions by existing bondholders and the public (through an intermediaries’ offer) between tomorrow, August 1, and noon on September 7 but may close earlier in the event of oversubscription. The bonds are expected to be admitted to the official list of the Malta Stock Exchange on September 23, 2022.
Izola Bank plc is wholly owned by the Van Marcke Group, a family-owned company which is fast approaching its centennial of operations. Though the majority of its business activities are concentrated in Belgium, the group operates over 140 stores in Belgium, France, the US, Switzerland and Luxembourg.
The group is the largest plumbing and heating wholesaler in Belgium and a manufacturer and retailer of sanitary ware, bathroom furniture and related products. It is also involved in packaging and transportation. The brand is dedicated to providing a better quality of life through environmentally friendly and sustainable products. The group’s new €75 million distribution centre in Kortrijk, Belgium is completely carbon neutral.
Izola Bank plc obtained its banking licence in 1994 and since inception has been heavily involved in the Van Marcke Group’s treasury operations, particularly in the areas of cash and liquidity management, as well as lending and factoring.
The bank provides tailor-made financing solutions for SMEs and large companies in Malta and Belgium, mainly through commercial credit facilities and factoring. It also offers retail customers online savings and term deposits as well as mortgage lending.
Andrew Mifsud, CEO and executive director of Izola Bank plc, said: “This bond issue will enable the bank to continue its growth path, providing excellent digital banking services with a human touch. Our team are strong advocates for putting our customers at the centre of everything we do. Our impeccable service level, corroborated by our customers’ experience, our ongoing investment in technology and our diversified portfolio are helping the bank grow from strength to strength.”
The sponsors for this issue are MZ Investment Services Ltd and Rizzo, Farrugia & Co. (Stockbrokers) Ltd. Legal counsel has been provided by Camilleri Preziosi.
More information is available at www.izolabank.com/mt-en /blog/41/new-bond-issue.