GAP Group plc yesterday announced that it has received regulatory approval for the issue of €21,000,000 in bonds to finance two projects in Mosta and Qawra.

In a release on the Malta Stock Exchange, GAP Group’s Board of Directors revealed that the bonds will have a nominal value of €100 per bond and will have a 3.7 per cent coupon rate, redeemable between December 2023 and 2025.

The publicly listed company is seeking funds to acquire two sites in Mosta and Qawra.

The Mosta site is expected to cost €11,000,000 and the project will entail the construction, development and finishing of a total of 94 residential units, four commercial outlets and 109 car spaces, spread over ten blocks with a variety of two and three bedroomed residential units.

The Qawra site is expected to cost €4,600,000 and the project will entail the construction, development and finishing of a total of 80 residential units, comprising a mix of two and four bedroomed units and 90 lock-up garages, spread over six blocks.

Of the remaining amount, €1 million will be used to settle capital creditor balances while €3.8 million is dedicated for excavation and development costs incurred in 2021.

The prospectus can by found on the company’s website and from Authorised Financial Intermediaries.

Application forms will be mailed to existing GAP Group Bondholders (being holders of the 3.65% GAP Group p.l.c. Secured Bonds 2022 and holders of the 4.25% GAP Group p.l.c. Secured Bonds 2023 as at 20 November 2020) on 24 November 2020.

Application forms for other investors will be available from Authorised Financial Intermediaries as from 30 November 2020.

Applications must be for a minimum of €2,000 and in multiples of €1,000 thereafter.