Development company GAP Group on Thursday announced that its €23 million bond issue at 4.75 per cent has been subscribed in full.

The secured bonds are expected to be admitted to listing on the Malta Stock Exchange’s official list on 29th December 2022, and trading is set to commence thereafter.

€22.5 million of the funds generated from the bond issue will be directed towards the development of a 118-unit apartment complex at Żonqor, Marsaskala, while the difference will go towards issuance costs.

The majority of the money, €15.9 million, will be utilised for the acquisition of the site, while the remaining €6.6 million will be used to partially finance development costs.

The bond issue by one of GAP Group’s subsidiaries, GAP Group Finance Ltd, is secured by a fourth-ranking general hypothec over the issuer’s assets, present and future, and a first-ranking special hypothec over the Żonqor site, and any subsequent developments and constructions, each for the full nominal value of the secured bonds and interest thereon.

The bonds will also be secured with a first-ranking privilege over the Żonqor site and any development on it for €14.2 million, along with a pledge on the insurance policy proceeds for the bonds’ full nominal value and interest. They have a nominal value of €100 and have been issued at par.

They are redeemable on 22nd December 2027 or at any date falling between 22nd December 2025 and the advertised redemption date.

The Żonqor development will be built on a 5,000 square metre plot that forms part of an 8,000 square metre site that entered the development zone in the 2006 rationalisation scheme. Following that, it was rezoned further for five-storey in 2019, after a request from its owner, Anton Camilleri, who is now set to gain €15.9 million from its sale.