FIMBank plc, the Malta-based global Trade Finance Bank, today announced a Bond Issue of an aggregate of €25 million bearing a coupon of 4.25% per annum maturing in 2013. The Issue can be increased by a further €10 million in the event of oversubscription. The Bonds are unsecured and will be available for investment in either a Euro or US Dollar denomination.
The Bond Issue was announced by FIMBank President Margrith Lütschg Emmenegger during a meeting with the media held earlier today. Giving first an outline of the Group’s financial results for the six months ended 30 June 2010, Ms Lütschg Emmenegger stated that the Bank’s performance remained strong despite persistently difficult market conditions. In her presentation Ms Lütschg Emmenegger outlined the salient strategic and business developments of the Group and the plans for the future. She referred to the Bond Issue of March 2009, which was of a higher coupon because of the longer maturity (10 years) since it was geared towards supporting the capital investments of the Group, primarily the factoring Joint Ventures.
On the other hand the proceeds from the new Bond Issue will be utilized “in support of the general funding requirements of the Bank and the Group, with a special focus on medium term structured commodity finance transactions with maturities of between two and three years”. Ms Lütschg Emmenegger explained that from a strategic standpoint, Structured Trade Finance remains a core product for FIMBank, with the focus being on Commodity Finance and other self-liquidating transactions. She emphasized that FIMBank’s business model was strong, tried, tested and successful. This has in good part been due to the continuous support of the growing family of shareholders and bondholders who will be giving preference in subscribing to the new Bonds, both in terms of a discount to the Offer Price and a preferential allocation.
The Offer Period of the FIMBank Bond Issue will be between the 25th and the 29th October, with application forms available as of the 8th October. An application has been made to list the Bonds on the Official List of the Malta Stock Exchange. Lombard Bank Malta plc is the Manager and Registrar of this Bond Issue, while Rizzo Farrugia & Co (Stockbrokers) Ltd is the sponsor.