Mediterranean Bank announces first €15 million bond issue

A bank statement issued today explained how the bonds bear interest at the rate of 6.25% yearly and had a nominal value and issue price of €100 per bond.

Mediterranean Bank had applied for the bonds to be listed on the official list of the Malta Stock Exchange (MSE). Mediterranean Bank has grown rapidly since being acquired in July 2009 by AnaCap Financial Partners, a London-based private equity firm specialising in financial services with over €1 billion in assets under management.

Since the acquisition, the management and operations of the bank had been “significantly enhanced”, the bank statement insisted. Moreover, Mediterranean Bank had embarked upon a programme to upgrade its systems and IT infrastructure “in order to provide its clients with professional service of the highest standard”.

As at 30 June 2010, the Bank had built an asset portfolio of €1.33 billion, and during the six months ended 30 June 2010, it generated operating income of €12.77 million and net profits of €5.61 million.

Mediterranean Bank’s management had undertaken a strategy to position it as a savings and wealth management institution “both domestically in Malta and internationally”.

In order to accelerate its expansion locally, last month the parent company of Mediterranean Bank, Medifin Holding Limited, achieved an important milestone by acquiring a major shareholding in Charts Investment Management Service Limited, a major Maltese stockbroking, wealth management and corporate advisory firm. A few weeks ago, the bank opened its first branch in Sliema with the aim of being more accessible to its existing and prospective clients.

During the 12-month period ended 30 June 2010, Mediterranean Bank had increased its customer base to over 1,000 retail clients and increased its deposits by over €100 million to €127.72 million. The Bank revealed it intended to open “at least one additional branch in Malta during the coming months”.

Further information on the bond issue could be obtained from Mediterranean Bank, Calamatta Cuschieri & Co Ltd., who were acting as sponsors, and other authorised financial intermediaries across Malta and Gozo. Copies of the prospectus and application forms will be available from Monday 20 September 2010.