Bonnici Bros. Properties plc has announced the issuance of €12 million 5.25 per cent unsecured bonds maturing in 2033, having a nominal value of €100 per bond issued and redeemable at par.

Bonnici Bros. Properties has a diversified property portfolio which allows it to maximise its returns from a number of different sectors, which include the industrial, construction, hospitality, residential and academic sectors.

The principal purpose of the bonds is to diversify the property portfolio and income stream of the company.

The net proceeds from the bonds, which net of expenses are expected to amount to approximately €11,850,000, will be utilised as outlined below.

The amount of circa €5,867,053 will be used to settle the purchase price and loan amounts for the acquisition of properties in Sliema and Floriana, a quarry in Mqabba, and three suites in Mercury Towers.

The amount of circa €3,751,200 will be used for payment of works for the development to completion of the Mercury Suites and the Ta’ Habel Mica property.

The remaining balance of net proceeds, an amount of circa €2,231,027, will be used for the general corporate funding purposes of the issuer.

The minimum application amount is €2,000 and in multiples of €100 thereafter.

In 2018, Bonnici Group took the strategic decision to transfer all its immovable property out of the Bonnici Group to a separate company owned by the same ultimate shareholders.

The objective of asset restructuring of the immovable property outside the Bonnici Group was to maximise the proper economic and investment diversification in order to expand the real estate sector through long-term strategies.