Bank of Valletta to repay €350 million in notes one year early
BOV receives approval for early repayment
Bank of Valletta (BOV) plc has received regulatory approval to repay €350 million in Senior Non-Preferred Notes a year ahead of schedule.
The Bank will redeem the notes on 6 December 2026, instead of their original maturity date of 6 December 2027.
The securities carry an annual interest rate of 10%, with BOV exercising it’s early repayment option under the terms of the issue.
Investors to receive full repayment
BOV will repay noteholders 100% of their outstanding principal, together with any interest accrued up to, but excluding, the redemption date.
The repayment will bring the bond issue to an end, with investors receiving the amounts due under the agreed terms.
The Bank will provide further information through the required notices ahead of the December repayment.
Early redemption of senior debt
Senior Non-Preferred Notes are a type of bank debt that ranks below ordinary senior debt if a bank faces financial difficulties.
Banks use these instruments to raise funds and meet regulatory requirements relating to their ability to absorb losses.
The notes, identified by ISIN XS2539425095, have a fixed-rate resetting structure.