Izola Bank plc announces €7m issue in secured notes due 2015

Izola Bank is issuing €7,000,000 infive-year Secured Notesof a nominal value of €1,000 issued at par bearingan interest rate of 5.35% per annum payable annually as from 30 June 2011. In the case of over-subscription, the Secured Notes may be increased by another €2 million. 

The proceeds from these Secured Notes will be principally used to support the general growth of the Bank and specifically to further the Bank’s factoring and lending activities.

Izola Bank is a fully owned subsidiary of the Van Marcke trading and manufacturing group of Belgium. With a turnover of €400 million in 2008, the group operates in Belgium, France, the Netherlands, the US, Switzerland and Luxembourg. It was established in 1929 and currently employs over 1,600.

The Van Marcke Group is one of Europe’s largest plumbing and heating wholesalers.  It has other interests in manufacturing involving office and laboratory furniture and sanitary ware, and is engaged in a diverse range of sectors, including packaging, transportation, asphalt supply, road milling contracting and recycling of reclaimed asphalt.

Based in East Street, Valletta, Izola Bank was established in Malta in 1994, with a primary focus on providing cash management and treasury services to the Van Marcke Group. In recent years the bank expanded its customer base and provides internet banking services to customers in the Belgian and French markets. Last year the Bank also launched fixed-term deposit products on the Maltese market.

“The response from Maltese customers to Izola Bank’s first local products has been very positive and has exceeded the bank’s own expectations. We are confident that Maltese investors react with similar enthusiasm to the Secured Notes issue,” said Mr. Andrew Mifsud, General Manager of Izola Bank.

Copies of the Prospectus are now available from financial intermediaries. Subscriptions close on Monday 21^st June 2010 in the morning.