Bank of Valletta, in collaboration with the Malta Development Bank and the Family Business Office, has launched the BOV Family Business Success. The aim of this new product is to facilitate the transfer of ownership between family members within family businesses.
The BOV Family Business Success is for family businesses which register with the Family Business Office and would like to transfer part of or the full share capital or capital ownership from parents to their children or among siblings through one or more of the following: a takeover of the relevant family business; a reduction in the issued share capital; the payment and distribution of a dividend or the repayment of any shareholder loans due by the relevant family business. The maximum loan amount is €750,000 at a competitive variable interest rate and can be taken for a period of between one and 10 years. The Malta Development Bank will partially guarantee each loan transaction under an allocated fund of €10 million thus enhancing access to finance through a highly-reduced level of collateral requirement.
“Succession and transfer of ownership are crucial milestones for any family business, and tailored financing products are essential for a smooth transition and growth of the enterprise,” said Albert Frendo, BOV chief business development officer.
“Bank of Valletta has always been at the forefront in assisting local businesses to flourish through the provision of financing solutions to suit their specific needs and through expertise drawn from years of partnering with SMEs and family businesses. We are proud to be the first bank in Malta to launch this innovative product, offering affordable finance to family businesses planning their future.”
All loans are subject to normal bank lending criteria and final approval from the bank. Terms and conditions are available from www.bov.com. Issued by Bank of Valletta plc, 58, Zachary Street, Valletta VLT 1130. Bank of Valletta plc is a public limited company regulated by the MFSA and is licensed to carry out the business of banking in terms of the Banking Act (Cap. 371 of the Laws of Malta).
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