Bank of Valletta has announced the launch of an Unsecured Euro Medium Term Bond Programme of up to €325 million, following approval from the Malta Financial Services Authority (MFSA).

The first series under the programme consists of up to €100 million 5% unsecured subordinated bonds, maturing between 2030 and 2035. The tranche may be increased to €125 million if investor demand exceeds expectations and the Bank exercises its over-allotment option. The bonds will be offered to the general public.

This new issue follows the success of BOV’s €150 million bond earlier this year – the largest corporate issue ever recorded on the Maltese market – which was fully subscribed within days.

BOV Chairperson Dr Gordon Cordina described the move as a signal of confidence in the Bank’s strategic direction and the wider economy.

“The purpose of this programme is to consolidate the Bank’s capital position in support of forecasted balance sheet growth, in line with our 2024–2026 strategy,” Dr Cordina said. “We remain committed to rewarding our loyal customers, shareholders, and bondholders, while continuing our journey towards greater growth and excellence.”

Chief Executive Officer Kenneth Farrugia highlighted the Bank’s strong performance and international standing, citing positive credit ratings from Fitch and S&P Global.

“The launch of the EMTN programme aims to further strengthen our market position and reinforce our status as the Bank of Choice in Malta,” he said.

The Bank noted that the bonds are classified as complex financial instruments and may not be suitable for all retail investors. A suitability test will be required to ensure the product fits investors’ profiles and understanding of the associated risks.