Camilleri Finance plc on Friday announced that it has issued €15 million in 6.25 per cent unsecured bonds, having obtained regulatory approval from the Malta Financial Services Authority (MFSA).

The bond issue was first announced in December, following the request for the early redemption of the €5 million 4.75 unsecured bonds maturing in 2027.

The new bonds, maturing in 2034, will be offered to holders of the maturing bonds, who can apply for the new bonds between 15th January (today) and 19th January (Friday), both days included.

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 2034, and will be traded on the official list of the Malta Stock Exchange.

In the prospectus, Camilleri Finance stated that net of bond issue expenses, the proceeds are set to amount to around €14.5 million, which 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 confectionaries. 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.