€14,000,000 5% Unsecured Subordinated Bonds 2027-2032
Izola Bank p.l.c (the “Bank”) has announced a €14 million unsecured subordinated bond issue with an annual interest rate of 5% and a nominal value of €100 per Bond at par (the “Bonds”). The bond issue will mature on 15 September 2032 but may be redeemable at the Bank’s discretion on any date falling between 15 September 2027 and 14 September 2032. The Bonds will form part of the Bank’s capital and as such, Izola Bank will use the bond issue funds to help sustain its growth strategy.
Existing bondholders of the 4.5% Izola Bank p.l.c. Unsecured Bonds 2025 (ISIN MT0000531211) are being invited to subscribe to the Bonds in exchange for their existing holding at a 2.5% premium over par value (that is, at €102.50). The bond issue will open for subscriptions by existing bondholders and the general public (through an Intermediaries’ Offer) between 1 August 2022 and 12:00 hours on 7 September 2022, but may close earlier in the event of over-subscription. The Bonds are expected to be admitted to the official list of the Malta Stock on 23 September 2022, with trading commencing thereafter-.
Izola Bank p.l.c. is wholly owned by the Van Marcke Group, a family-owned company which is fast approaching its centennial of operations. Though the majority of its business activities are concentrated in Belgium, the Group operates over 140 stores in Belgium, France, the USA, Switzerland and Luxembourg. The Van Marcke Group is the largest plumbing and heating wholesaler in Belgium and a manufacturer and retailer of sanitary ware, bathroom furniture and related products. It is also involved in packaging and transportation. Van Marcke is a brand dedicated to providing a better quality of life through environmentally friendly and sustainable products. The Group’s new €75 million distribution centre in Kortrijk, Belgium is completely carbon neutral.
Izola Bank p.l.c. obtained its banking licence in 1994 and since inception has been heavily involved in the Van Marcke Group’s treasury operations, particularly in the areas of cash and liquidity management, as well as lending and factoring. The Bank provides tailor-made financing solutions for SMEs and large companies in Malta and Belgium mainly through commercial credit facilities and factoring. The Bank also offers retail customers online savings and term deposits as well as mortgage lending.
Andrew Mifsud, CEO and Executive Director of Izola Bank plc explains, ‘This bond issue will enable the Bank to continue its growth path, providing excellent digital banking services with a human touch. Our team are strong advocates for putting our customers at the centre of everything we do. Our impeccable service level, corroborated by our customers’ experience, our ongoing investment in technology and our diversified portfolio are helping the Bank grow from strength-to-strength. Our recent and ongoing projects include the launch of retail mortgage lending in the local market earlier this year and the upcoming launch of our new factoring solution, which is provided by HPD Lendscape, one of the world’s leading factoring software providers. We will also shortly be relaunching Izola Saver, our online savings platform to the local and international market, with an improved customer experience and more features to help our customers save money around their lifestyle.’
The sponsors for this issue are MZ Investment Services Ltd and Rizzo, Farrugia & Co (Stockbrokers) Ltd. Legal counsel has been provided by Camilleri Preziosi.
More information about the bond issue and the list of authorised intermediaries are included in the Prospectus dated 22 July 2022 which is available online: https://www.izolabank.com/mt-en/blog/41/new-bond-issue
Issued by Izola Bank p.l.c. (C 16343) (the “Bank”) with its registered address at 53-58 East Street, Valletta, which is licensed to undertake Banking Activities under the Banking Act, Cap 371. The approval of the Prospectus by the MFSA should not be understood as an endorsement of the Bonds offered and admitted to trading on the Official List of the MSE. Prospective Investors wishing to acquire Bonds of the Bank should read the Prospectus before making any investment decision, to fully understand the potential risks and rewards associated with investing in the Bonds. A copy of the Prospectus is available from www.izolabank.com and other Authorised Financial Intermediaries listed therein.
The Bonds constitute subordinated and unsecured obligations of the Bank and are classified as complex financial instruments. The Bank is subject to the Bank Recovery and Resolution Directive (BRRD) as transposed in local laws and therefore, Prospective Investors should consider the risk that, in the event that the Bank becomes subject to resolution, the Bonds including any accrued interest, may be written down or converted into equity, and a broad range of other resolution actions may be taken by the Resolution Committee in respect of the Bank. Therefore, investors may lose part or all their investment.
The value of the investment can down as well as up and past performance is not necessarily indicative of future performance. An investment in the Bonds of the Bank may not be suitable for all Investors and Prospective Investors are to consult their Financial Advisor so as to ensure the suitability of investing in the Bonds. Prospective Investors are only able to acquire the Bonds provided that the Investment in the Bonds is deemed to be suitable.
This advertisement has been approved by M.Z. Investment Services Limited (C23936) of 61, M.Z. House, St. Rita Street, Rabat Malta RBT 1523 and Rizzo, Farrugia & Co. (Stockbrokers) Ltd (C 13102) of Airways House, Fourth Floor, High Street, Sliema SLM 1551) (the “Co-Sponsors”) on behalf of the Bank. The Co-Sponsors are licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap 370.