HSBC Bank Malta Plc

Capital/Financing Update • Jan 28, 2025

28 January 2025

COMPANY ANNOUNCEMENT

The following is a Company Announcement by HSBC Bank Malta p.l.c. in compliance with the Capital Markets Rules issued by the Malta Financial Services Authority.

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HSBC Bank Malta p.l.c. (the 'Bank') announces that further to Company Announcements HSBC 392 and HSBC 411 published on 16 December 2021 and 27 January 2023, respectively, the Bank has today entered into a €60 million loan agreement with HSBC Continental Europe (the "Loan"). The purpose of the Loan is to enable the Bank to meet the minimum requirement for own funds and eligible liabilities ("MREL") in terms of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms, as amended from time to time (including as amended by Directive (EU) 2019/879 of the European Parliament and of the Council of 20 May 2019) (the "BRRD").

The Loan, which is unsecured, is for a period of 3 years with an option of early repayment by the Bank as from the 2 nd year subject to the terms and conditions of the Loan Agreement and applicable laws and regulations. The Loan bears interest at a rate equal to 3-months EURIBOR plus a margin of 76 basis points. The Loan is designated and constituted as a lower ranking liability as referred to in regulation 108(4) of the Recovery and Resolution Regulations (Subsidiary Legislation 330.09).

The Loan further strengthens the Bank's capital position and supports its compliance with the MREL target as set by the Single Resolution Board.

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Dr Paula Mamo LL.D. Company Secretary