BOV’s €300 million senior preferred EMTN issue 2x oversubscribed within hours

Bank of Valletta has announced the successful launch and execution of its €300 million callable Senior Preferred Notes under its Euro Medium Term Note (EMTN) Programme, following the opening of the books on Wednesday, 20^th May 2026.

The transaction marks the Bank’s second benchmark issuance in the international capital markets and represents a further milestone in strengthening its diversified funding base. Building on its long-standing position as Malta’s largest financial institution, the successful outcome reflects both the depth of its domestic franchise and its growing recognition among international institutional investors. The issuance was supported by Citi Bank and UBS acting as Mandated Lead Arrangers, underlining the Bank’s strong and well-established partnerships with leading global financial institutions.

The transaction attracted strong and high-quality investor demand from both domestic and international accounts. The order book peaked at approximately €0.8 billion (2.6x oversubscription) and closed at around €0.6 billion (2.0x oversubscription), highlighting robust appetite for the Bank’s credit and the strength of investor confidence in its business model. The Notes were priced at a coupon of 4.467%, with pricing tightening from initial guidance following a well-executed book-building process.

This outcome reflects the Bank’s solid credit fundamentals, resilient performance, and clear strategic direction. The successful execution further demonstrates the ability of the Bank to attract sustained interest from international institutional investors, while maintaining strong support from the domestic market, built on long-standing relationships with Maltese businesses and retail clients.

The positive reception follows an extensive investor engagement programme, including Non-Deal and Deal Roadshows across key European markets, which provided an opportunity to present the Bank’s strategy, financial performance, and forward-looking priorities.

This issuance represents a significant achievement not only for Bank of Valletta but also for Malta’s financial sector more broadly. The strong participation from international investors underscores Malta’s continued integration within European capital markets and enhances the visibility of the local banking sector on the international stage.

The investor base was well-diversified across high-quality institutional accounts. Asset Managers accounted for approximately 65% of allocations, Private Banks 16%, Insurance and Pension Funds 9%, Hedge Funds 6%, and other investors 4%. Geographically, allocations were approximately distributed as follows: Germany, Austria & Switzerland 22%, France 22%, BeNeLux countries 20%, Greece & Italy 14%, United Kingdom & Ireland 13%, Domestic Accounts 6%, and other jurisdictions 3%.

The Notes were offered exclusively to professional clients and eligible counterparties, with a minimum denomination of €100,000, in line with the Base Prospectus and market practice for institutional capital markets transactions.

Commenting on the successful issuance, the Bank’s Chairperson and Chief Executive Officer highlighted: “This successful transaction reflects the strength of Bank of Valletta’s franchise as Malta’s leading financial institution, underpinned by the trust of our domestic clients built over generations. At the same time, the strong participation from international institutional investors represents a clear endorsement of the Bank’s strategy, financial resilience, and long-term prospects. The quality and diversification of the investor base achieved in this transaction demonstrate our continued ability to access international capital markets on competitive terms, further strengthening our funding profile and supporting the sustainable growth of our lending and investment activities.”

The net proceeds from the issue will contribute to strengthening the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) of the Bank and its subsidiaries, supporting regulatory objectives while enabling continued growth in lending, investment activities, and broader Group financing needs.

The Notes are expected to be admitted to listing on the Official List and to trading on the Regulated Market of the Irish Stock Exchange plc, trading as Euronext Dublin, with effect from on or around the Issue Date.