Camilleri Finance plc on Friday announced that its €15 million 6.25 per cent unsecured bond issue has been admitted to the official list of the Malta Stock Exchange.
Trading for the bonds commenced on Monday (today).
The bonds were first issued last month, having initially been announced in December, following the request for the early redemption of the €5 million 4.75 per cent unsecured bonds maturing in 2027.
Camilleri Finance, which rebranded from Orion Finance plc last year, acts as a special purpose vehicle to raise finance for the business of Orion Group. It also recently increased its authorised share capital from €50,000 to €250,000. It is a subsidiary of Orion Retail Investments Limited, which is in turn a subsidiary of Camilleri Holdings Limited. Orion Retail Investments Limited is a property management company, set up to manage the property portfolio owned by Camilleri Group, which includes outlets at The Strand (Sliema), Żabbar Road (Fgura), St Anne’s Square (Sliema), South Street (Valletta), as well as a warehouse in Ħandaq (Qormi).
The new bonds are being issued with a nominal value of €100 per bond, redeemable at their nominal value on 23rd February 2024.
In addition to the announcement of the listing, Camilleri Finance also shared that in the Securities Note for the issue, published in December, it mistakenly included a requirement for any licensed financial intermediary effecting a transfer of bonds in the secondary market to carry out an appropriateness test or a suitability test. It stated that this sub-clause should be “disregarded altogether.”
In the prospectus, Camilleri Finance stated that net of bond issue expenses, the proceeds from the issue are set to amount to around €14.5 million, which in turn will then be used for a number of purposes.
Firstly, approximately €4.2 million will be used to make the redemption payment of the maturing bonds.
A further €3.2 million will be utilised to repay loans from Bank of Valletta (BOV) and MeDirect Bank, used for different purposes including the acquisition of Cyka Limited, various properties, and also to support operations.
Around €2.15 million will be utilised for the refurbishment of its outlets currently housing the Matalan and Mothercare brands. Camilleri Finance stated that this will “include, but will not be limited to the introduction of new franchise concepts, the planned acquisition of targeted new brands, as well as an investment in new IT infrastructure”.
The remaining €4.95 million will be used for general corporate funding.
Founded in 1843, Camilleri Group was renowned as one of Malta’s leading confectioneries. Over recent years, the group implemented a diversification strategy that has seen it expand into the retail fashion and FMCG segments. Among the stores it operates are Promod, Lipsy, Jules, Morgan, Matalan and Mothercare. It is also the local distributor of popular snack brands like Ritter Sport, Haribo, Tilleys, Walkers of London, and Lees of Scotland.
