Best Deal Properties Holding plc has signalled its intention to approach the market with a new €7 million bond issue, with the move still pending regulatory approval from the Malta Financial Servies Authority.
In a company announcement posted to the Malta Stock Exchange (MSE), Best Deal Properties said the unsecured bonds will carry a coupon rate of 5.35 per cent, and will come to maturity in 2031.
“Full details of the bonds will be provided in a prospectus that will be made available following the necessary approvals by the MFSA,” said the company.
Best Deal Properties, a residential property developer, is highly active In the local capital market, with three other bond issues currently trading on the MSE.
On the other hand, it has no bank debt, with the bond issues and a €2 million shareholders’ loan due to be repaid by the end of the year constituting its only borrowings.
As per its latest financial statement, covering the half-year period up to 30th June 2024, its 4.25 per cent secured bond issue of €16 million, due to mature in 2024, only has €1.2 million outstanding.
The company has engaged in a regular bond buyback programme over the last years, gradually reducing the value of outstanding bonds and the company’s debt gearing.
The bonds maturing in 2024 were also significantly reduced after a majority of outstanding bondholders elected to subscribe to a new bond issue released earlier in 2024. These €15 million 5.75 per cent secured bonds are redeemable between 2027 and 2029.
Best Deal Properties Holding plc also has a €15 million bond issue with a coupon rate of 4.75 per cent due between 2025 and 2027.
In all, the company’s total outstanding bonds – prior to the new €7 million bonds – amount to some €31 million.
Other liabilities, as at 30th June, include deposits from clients on promise of sale agreements amounting to €889,000 and payables of contractors of €2.1 million.
The group’s assets include properties held for resale and development, with a value of €34.2 million, cash and cash equivalents of €2.9 million and available for sale financial assets – consisting of Treasury Bills – of €4.7 million.
Best Deal Properties generated €5.6 million in revenue over the first half of the year, turning an operating profit of €881,000 and profit before tax of €917,000.
