€7 million in Izola Bank 'secured notes' oversubscribed

Subscriptions in excess of €14 million were reportedly received. The issue was increased by €2 million following high demand. The secured notes bear an interest rate of 5.35% per annum

A company statement said that subscriptions not exceeding €2,000,000 would be met in full and subscriptions in excess of €2 million would be satisfied by the allocation of €2 million and a further 39.32% of the remaining balance , rounded down to the nearest thousand.

Andrew Mifsud, General Manager of Izola Bank commented on the bank’s satisfaction to  the positive response, adding also that  Izola Bank is “ proud to be listing the first securitisation of its nature on the Malta Stock Exchange."

Interest on the notes will commence as from today. The notes are expected to be listed on the Malta Stock Exchange by not later than 28 June and trading to commence on 30 June 2010.

Revenue 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.