MeDirect Bank Malta is seeking approval from the Malta Financial Services Authority (MFSA) to issue €30 million in new subordinated bonds as it prepares to redeem two existing bond issues ahead of their scheduled maturity dates.

In an official statement, the bank said that it submitted an application on 26th August 2026 for the admissibility to listing on the Official List of the Malta Stock Exchange of the new €30 million 5.85 per cent unsecured subordinated bonds, which are due between 2031 and 2036.

The bonds will have a nominal value of €100 each and will be issued at par. MeDirect said the issue forms part of its capital management strategy.

According to the bank, the proposed issue is aimed at strengthening its regulatory capital position, optimising its Tier 2 capital structure and supporting its general capital and funding requirements.

The issue remains subject to the necessary regulatory approvals, including approval of the prospectus and the bonds’ admissibility to listing.

At the same time, MeDirect’s board of directors has resolved to proceed with the early redemption of its existing 5 per cent subordinated unsecured bonds 2022–2027 and 4 per cent subordinated unsecured bonds 2024–2029.

The bank intends to redeem the 2017 bonds on their next designated early redemption date of 13th October 2026 and the 2019 bonds on 5th November 2026. Existing bondholders will receive 30 days’ prior written notice, with the formal notification to follow.

MeDirect intends to first make the new bonds available to the existing bondholders pursuant to: (i) an exchange offer of new bonds for the existing bonds denominated in euro; and (ii) a priority offer for the application for new bonds, for a consideration in cash, to holders of existing bonds denominated in pound sterling, subject to the terms and conditions to be set out in the prospectus for the proposed bond issue.

Any new bonds not taken up by the existing bondholders will be made available for subscription pursuant to an intermediaries offer.

The bank said it will apply cash proceeds from the new bond issue, together with existing cash reserves, towards the early redemption of the existing bonds. MeDirect has already obtained the European Central Bank’s prior permission for their redemption and cancellation.

The cut-off date for existing bondholders to participate in the proposed issue is close of business on 31st August 2026. Trading in the existing bonds on the Malta Stock Exchange will be suspended from the close of business on 27th August 2026.

Further details of the proposed bond issue will be announced by MeDirect in due course, with full information to be included in the prospectus following its approval by the MFSA.