Excel Finance plc has announced the launch of a €50 million secured bond issue with an annual interest rate of 5.4 per cent, maturing on 2031.

The company is the financing arm of Excel Investments Holdings Limited, which is the parent company of subsidiaries Excel MJD Limited, Excel Housing Limited and Excel Property Trading Limited. The company, operating in real estate and construction, is owned by developers Joseph Portelli, Mark Agius and Daniel Refalo.

The issued bonds will be secured by a first-ranking special hypothec over Q Hub in Qormi and various residential properties owned by group companies.

They will have a nominal value of €100 per bond and will be guaranteed by the parent company.

The minimum subscription amount is €5,000 and the offer period will run from Wednesday 4th December to Friday 20th December.

The proceeds from the bond issue will primarily be allocated for three key purposes. Firstly, to refinance approximately €25 million in existing bank loans and to fund approximately €8 million in development costs for ongoing real estate projects. Thirdly, bonds will provide approximately €16.1 million for general corporate funding purposes.

The Excel group Board of Directors highlighted the fact that the bond issue represents an “important milestone for the expansion of the property development and rental operations,” as the funds raised will be utilised to enhance financial structuring and drive growth strategy.

Calamatta Cuschieri Investment Services Limited and Bank of Valletta plc are acting as Sponsor and Co-Manager as well as Registrar and Co-Manager respectively.

Interested investors can subscribe through any authorised financial intermediaries. The full prospectus is available here.