APS Bank has announced that its €50 million bond issue will close on Monday (today) at 3pm, mere hours after opening, as investors’ enthusiasm for its offerings shows no sign of slowing down.
The bank’s initial public offering (IPO) last year, one of Malta’s largest ever, also saw remarkably strong demand, similarly closing just hours after it opened.
The current bond issue, carrying a coupon rate of 5.85 per cent, is subordinated and unsecured, and the proceeds will be used to shore up the bank’s capital requirements under EU regulations.
Given the complex nature of the bonds – applicants had to pass a suitability assessment when registering their interest - there were some questions as to the strength of the demand.
However, the €35 million of bonds available to the public (the other €15 million was pre-allocated) were lapped up in hours, with APS Bank saying that “based on information held by the Authorised Financial Intermediaries and preliminary indications received from them, the bank will be closing the offer period at 3pm on the day of its opening.”
It added that all applications received by this time will be processed.