Bank of Valletta (BOV) has secured regulatory approval from the Malta Financial Services Authority (MFSA) to list an Unsecured Euro Medium Term Bond (EMTN) Programme with a maximum value of €325 million.

The first series and tranche under this programme consists of up to €100 million in 5 per cent unsecured subordinated bonds maturing between 2030 and 2035, with the possibility of increasing the offer to €125 million if demand warrants, through the bank’s Over-Allotment Option. The bonds are open for subscription by the general public.

This new issuance follows BOV’s highly successful €150 million unsecured subordinated bond issue earlier this year, which closed in just a few days and became the largest corporate bond ever issued on the Maltese market.

According to the Final Terms dated 17th October, the net proceeds from the bond issuance will be primarily used to reinforce BOV’s compliance with its minimum requirement for own funds and eligible liabilities (MREL), a key regulatory framework under the EU’s banking resolution directive, and/or to strengthen its capital base, thereby supporting the projected growth of the bank’s balance sheet.

This will enable BOV to expand its lending portfolio, pursue a wider range of proprietary investment opportunities and strengthen its resilience and regulatory positioning.

Additional proceeds may also be allocated to general financing requirements, providing operational flexibility and supporting long-term sustainability.

Gordon Cordina, Chairperson of Bank of Valletta, described the new bond programme as a clear signal of the bank’s confidence in its growth strategy and its role in the national economy.

“The purpose of this programme is to enable the Bank to consolidate its capital position, mainly in support of the forecasted balance sheet growth in line with its 2024-2026 strategy,” Dr Cordina said.

Echoing this sentiment, Kenneth Farrugia, CEO of BOV, highlighted the bank’s robust market standing, reinforced by favourable international credit ratings from agencies such as Fitch and S&P Global

“The launch of the new EMTN programme aims to further solidify our market position and reinforce our status as the bank of choice in Malta,” he concluded.