Bank of Valletta plc

Share Issue/Capital Change • Oct 23, 2017

BOV/319

COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by Bank of Valletta p.l.c. (the "Issuer") pursuant to the Malta Financial Services Authority Listing Rule 5.16.11:

Quote

Rights issue by Bank of Valletta p.l.c. of approximately €150 million worth of new ordinary shares (the "Rights Issue")

The Board of Directors of the Issuer announces that it has authorised the submission of an Application for Authorisation for Admissibility to Listing to the Listing Authority requesting the approval of a prospectus (the "Prospectus") in relation to the Rights Issue. The Rights Issue will be offered to existing shareholders appearing on the register of members as at the close of business on the 26 October 2017.

Application will be made, in respect of the new shares, to the Malta Stock Exchange for their admittance to the Official List and for trading to commence thereafter.

The new shares to be issued will be aimed at further strengthening the Issuer's common equity tier 1 (CET1) capital such that the Issuer will be in a better positon to meet its future business requirements and the capital buffers required for such business requirements. The proceeds from the Rights Issue will also be used by the Issuer to meet its general funding purposes.

Further detailed information on the Rights Issue, shall be available in the Prospectus, which document will be available in due course following attainment of the necessary regulatory approvals.

Unquote

Dr. Ruth Spiteri Longhurst B.A., LL.D. Company Secretary

23 October 2017