Real estate development GAP Group plc is seeking approval for a €21 million bond issue, and is inviting existing bondholders to surrender their existing bonds in favour of the new issue.

The €21 million 3.90% Gap Group p.l.c. Secured Bonds 2024 – 2026 (New Bonds) are expected to be listed and traded on the Official List of the Malta Stock Exchange.

An announcement posted to the Exchange by the Group’s Board of Directors stated that the company will be inviting holders of the €19,247,300 4.25 per cent Gap Group plc Secured Bonds 2023 (Exchangeable Bonds) to subscribe to the New Bonds by surrendering their respective holding in Exchangeable Bonds.

In so doing, they shall benefit from a premium of 1.25 per cent on the nominal value of Exchangeable Bonds so surrendered.

Furthermore, holders of Exchangeable Bonds may also subscribe for additional New Bonds.

The announcement noted that the cut-off date for such eligibility is 26th November 2021.

As such, trading in the Exchangeable Bonds will be suspended after the trading session on 24th November 2021 until further notice.

Full details of the New Bonds will be provided in a prospectus that will be made available following the necessary approval by the MFSA.
GAP Group has appointed MZ Investment Services Ltd as sponsor for the purpose of this bond issue.

Reserve Account

GAP Group currently has three existing bonds in issue:

  1. €29,218,400 3.65 per cent GAP Group plc Secured Bonds 2022
  2. €19,247,300 4.25 per cent GAP Group plc Secured Bonds 2023
  3. €21,000,000 3.7 per cent GAP Group plc Secured Bonds 2023-2025

The total aggregate amount of bonds in issue amounts to €69,465,700.

Much of this amount is already covered thanks to a reserve account created for the redemption of the three bonds.

All sales of units forming part of the hypothecated property in favour of the bond issue are made on condition that the units are free from hypothecary rights and privileges against an agreed amount from the sale proceeds being deposited in the reserve accounts.

According to the Group’s Interim Financial Statements, dated 30th June 2021, the reserve account of the 4.25 per cent Secured Bonds 2023 carried a balance of €18,857,050 (98 per cent of the total bond repayment) and the reserve account of the 3.65 per cent Secured bonds 2022 carried a balance of €16,852,576 (58 per cent of the total bond repayment).

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