Best Deal Properties, a local real estate development firm, has obtained regulatory approval from the Malta Financial Services Authority for a new bond issue, it announced in a new market update.

The secured bonds shall not exceed €15 million in aggregate nominal value. They will carry a coupon rate of 5.75 per cent, and sett to mature between 202 and 2029.

The new bonds will be guaranteed by Best Deal Ghadira Limited, a wholly-owned subsidiary of the company, both in terms of annual interest and capital repayment upon maturity.

Best Deal Properties already has two other bond issues currently on the Malta Stock Exchange. One carries a coupon rate of 4.25 per cent and is set to mature this year. The other carries a coupon rate of 4.75 per cent and is due to mature between 2025 and 2027.

The bond issue that will mature this year was originally a €16 million one, but Best Deal Properties has bought back significant amounts on a regular basis, with the outstanding amount as at 22nd March 2024 being €6.1 million.

Holders of the maturing bonds were given preference for the subscription of the new bonds, with a cut off date set for earlier this month.

The prospectus for the new issue will be available on the company’s website from tomorrow 26th March 2024.