Izola Bank p.l.c. has issued a formal notice announcing the offer of up to €14,000,000 5% Unsecured Subordinated Bonds 2027 – 2032 issued and redeemable at their nominal value (at €100 per Bond).

The aggregate proceeds from the Bond Issue will constitute an integral part of the Bank’s capital plan, with a view to further strengthen its Tier 2 Capital requirements in terms of the CRR. Proceeds derived other than by Exchangeable Bond Transfer, as well as any amounts received through the exercise of the Cash Top-Up, will be used by the Bank to meet part of its general financing requirements.

The Bonds shall be made available via an allocation policy as follows:

(a) up to an aggregate of €8,000,000 shall be allocated to Existing Bondholders applying for Bonds by way of Exchangeable Bond Transfer up to the extent of their holdings of Exchangeable Bonds and subject to the minimum application requirements;

and (b) up to an aggregate of €6,000,000 shall be allocated to Authorised Financial Intermediaries applying for Bonds through the Intermediaries’ Offer

The Bonds are complex financial instruments and subject to the risk of bail-in under the Bank Recovery and Resolution Directive. Therefore, may not be suitable for all prospective investors. Subscription in the Bonds is subject to the overarching requirement that prospective applicants who are Retail Clients may only subscribe for Bonds after passing a Suitability Assessment.

If you wish to enquire for this offer kindly follow the guidance below or contact us on +25 688 688 to speak to one of our qualified financial advisors.

Alternatively, visit us in one of our branches at your convenience.

Business overview

The Issuer is licensed by the MFSA to carry on the activities of a credit institution in terms of the Banking Act (Cap. 371 of the laws of Malta), as well as the following additional activities: financial leasing; payment services as defined in the Financial Institutions Act (Cap. 376 of the laws of Malta); issuing and administering other means of payment insofar as this activity is not covered by the immediately preceding activity; participation in securities issues and the provision of services related to such issues; and trading for own account in: money market instruments, foreign exchange, exchange and interest rate instruments, and transferable securities. The Bank’s core business segments are considered to be: (i) factoring; (ii) lending; (iii) deposit-taking; and (iv) liquidity management.

How to apply

Orders can be submitted through one of our Financial Advisors based in one of our four branches (Mosta, Sliema, B’kara and Fgura) subject to ensuring that an investment in the Bond is suitable or appropriate for prospective investors.

All orders must be submitted by not later than the 7th September 2022 at 17:00 (Closing date).

Non-nominee applications will be subject to a EUR 25 fee.

A copy of the Prospectus is available here.

The value of the investment can go down as well as up and past performance is not necessarily indicative of future performance. Investing in bonds of the Issuer may result in a loss of some or all of the capital invested.

The Bonds constitute subordinated and unsecured obligations of the Issuer. The Issuer is subject to the Bank Recovery and Resolution Directive (BRRD) as transposed in local laws that allow the Resolution Committee appointed by the Resolution Authority to exercise resolution tools including the power to write-down or convert the Bonds in the event the Issuer is under Resolution. Therefore, Bondholders may lose part or all of their investment. An investment in the Bonds of the Issuer may not be suitable for all investors and prospective investors are to consult their Financial Advisor so as to ensure the suitability of an investment in the Bonds and to make an investment on the basis of the Prospectus, including the Risk Factors contained therein. Prospective investors are advised that CCIS is not required to undertake an appropriateness assessment and investors do not benefit from the corresponding protection afforded under the Conduct of Business rules.

This advert has been approved for issue by Calamatta Cuschieri Investment Services Limited, which is licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap 386. CCIS, Ewropa Business Centre, Triq Dun Karm, Birkirkara BKR 9034, Malta.