MeDirect's €30m bond offer oversubscribed, intermediaries' offer scrapped

MeDirect Bank (Malta) plc has closed its €30 million subordinated bond issue early after existing bondholders snapped up the entire offer. The 5.85% unsecured subordinated bonds, due 2031-2036, were priced at par with a nominal value of €100 each under a prospectus dated 31 August 2026.

Demand from existing bondholders exceeded the amount of bonds available, the bank announced on 25 September. As a result, the offer closed as scheduled at 10:00 a.m. that same day, and the Intermediaries' Offer, which had been lined up in case bonds remained, will no longer proceed.

Because applications surpassed the €30 million on offer, allocations will be scaled down. MeDirect said it will publish its allocation policy once the process is finalised, with the scaling-down carried out in line with the prospectus.

Investors who took part can expect the allocation policy announcement on 6 October 2026. Admission of the new bonds to the Official List of the Malta Stock Exchange is expected on 13 October 2026, with trading set to begin the following day, 14 October 2026.

The offer was initially reserved for existing holders of MeDirect's outstanding euro- and sterling-denominated subordinated bonds. Euro bondholders could exchange their holdings into the new issue, while sterling bondholders were given priority access through cash subscriptions.

MeDirect classified the announcement as containing inside information under the Market Abuse Regulation (EU) No 596/2014.

The swift take-up signals strong local appetite for subordinated bank paper, a useful data point for other lenders weighing similar funding rounds. It also spares MeDirect the cost and delay of a wider retail marketing push, though the scaled allocations may leave some institutional demand unserved.