GAP Group plc announced yesterday that the issue of €21 million 3.7% secured bonds has been oversubscribed.

In an announcement posted to the Malta Stock Exchange, the commpany revealed that the market had quickly bought up the bonds, which were released only a week prior.

The bonds have a nominal value of €100 per bond and a 3.7 per cent coupon rate, redeemable between December 2023 and 2025.

The bonds were made available to existing investors on 24th November, with applications by other investors only made available yesterday.

The short period to oversubscription may indicate an appetite for secure investment in the local market.

GAP Group is seeking funds to acquire two sites in Mosta and Qawra.

The Mosta site is expected to cost €11,000,000 and the project will entail the construction, development and finishing of a total of 94 residential units, four commercial outlets and 109 car spaces, spread over ten blocks with a variety of two and three bedroomed residential units.

The Qawra site is expected to cost €4,600,000 and the project will entail the construction, development and finishing of a total of 80 residential units, comprising a mix of two and four bedroomed units and 90 lock-up garages, spread over six blocks.

Of the remaining amount, €1 million will be used to settle capital creditor balances while €3.8 million is dedicated for excavation and development costs incurred in 2021.