The MDB is committed to ensure that Malta’s principal capital market remains robust and is determined not to allow the COVID-19 outbreak to have a longer-term destabilising impact on the role of Malta’s main capital market in providing longer-term financing to the corporate sector.
Towards this end, the MDB has offered a temporary Bond Subscription Facility to support the rolling over of Mediterranean Investment Holdings p.l.c. bonds that will be maturing on 31 July 2020. Through this temporary Bond Subscription Facility, the MDB shall cover the part of Mediterranean Investment Holdings p.l.c. bond issue, if any, that remains unsubscribed by the market – up to a maximum of €18.7 million, with an annual interest rate of 5.5% (as per company announcement accessible on this link).
This temporary facility was approved on 3 July 2020 by the European Commission which concluded that the measure is appropriate and proportionate in line with Article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU) and the conditions set out in the Commission’s Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak. More information on the state aid decision is available on this link.