Malta-based Challenge Aviation p.l.c. (C 113656) has announced the launch of a €30 million secured bond programme to be issued in one or more tranches over 12 months, providing investors with the opportunity to participate in the company’s continued international expansion in air cargo and logistics.

The programme will be guaranteed on a joint and several basis by Challenge Aviation Holding Limited (the “Guarantor”) and will be secured by a first-ranking pledge over a Boeing 747-400F aircraft (MSN 33729) with an estimated current market value of $39.8 million. The security package also includes an Aircraft Security Agreement (with an International Interest registered under the Cape Town Convention), a Pledge on Insurance with a replacement value of USD 50 million, and a Tripartite Agreement. The security structure also includes ongoing valuation and collateral maintenance undertakings.

Tranche 1 will be issued in denominations of €100 at par, and will carry a fixed annual interest rate of 5.75 per cent per annum (gross), with a term of six years and maturity in 2032. Tranche 1 will amount to €30 million, representing the full bond programme. Proceeds will be used to partly finance the Target Aircraft Loan obtained for the acquisition of a Boeing 777-300ER aircraft (MSN 38284) for approximately USD 41.5 million. The minimum subscription amount is €5,000, and the offer period will run from 29 April 2026 to 15 May 2026. 

Founded in 1976, Challenge Group is a fully integrated air cargo and logistics organisation combining airline operations, ground handling, maintenance, and global logistics services. Its structure enables end-to-end cargo solutions tailored for time-sensitive and high-value shipments.

The board of Challenge Aviation p.l.c. highlighted that the bond programme represents an important milestone for the expansion of the issuer's aircraft leasing operations. The Bond Group currently owns 14 aircraft valued at $372.78 million overall, with funds raised intended to further support the Group's growth strategy in the air cargo sector.

Calamatta Cuschieri Investment Services Limited is acting as Sponsor, Manager and Registrar. Interested investors can subscribe through any of the authorised financial intermediaries. The full Base Prospectus and Final Terms are available at: https://www.challenge-aviation-plc.com/ and https://www.mfsa.mt./  

IMPORTANT NOTICE:

This is an advertisement issued by Challenge Aviation p.l.c., C 113656. Prospective investors should read the Base Prospectus and Final Terms in full before investing. Investment in the Bonds involves risks, including potential loss of capital. The Base Prospectus has been approved by, and the Final Terms have been filed with, the MFSA. This should not be considered an endorsement of the Issuer or the Bonds. The value of the investment may go down as well as up. This advertisement does not constitute investment advice or a recommendation, and investors should seek financial, legal and tax advice if in any doubt as to the suitability of the investment. The full Base Prospectus and Final Terms are available at: https://www.challenge-aviation-plc.com/ and https://www.mfsa.mt./