Bank of Valletta plc has announced that its latest bond offering – the first tranche under its €325 million Euro Medium Term Bond Programme – has reached full subscription for the initial €100 million allocation.

The bank confirmed the development in a company announcement on 14th November, noting that it will now exercise its over-allotment option, allowing the total offer to increase to a maximum of €125 million. The bonds form part of the Series 1 Tranche 1 issuance and consist of five per cent unsecured subordinated bonds maturing between 2030 and 2035.

Despite reaching the initial target, the offer period remains open. Applications from the general public and Preferred Applicants – including existing shareholders, existing bondholders, group employees, professional clients, and eligible counterparties – will continue to be accepted until 25 November 2025, unless the bank opts to close subscriptions earlier in any category due to strong demand.

The bond programme, first announced in October 2025, allows BOV to issue up to €325 million in unsecured bonds over time, providing the bank with long-term funding flexibility as it continues to reinforce its capital structure.

Given its features, the bank said in a press release that the bond is classified as a complex instrument and may be difficult for potential investors to understand.

 As a result, it might not be suitable for all types of retail investors. Potential investors are advised that a suitability test is a required step to ensure full understanding and an appropriate fit for their investment portfolio. The publication of the base prospectus and the final terms, and additional information are available here. 

"The approval of the prospectus should not be understood as an endorsement of the securities offered or admitted to trading on a regulated market," it added. 

The €325 million 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.