Hal Mann Vella Group plc has announced the issuance of a second tranche of €2 million in unsecured notes, with net proceeds of €1.95 million earmarked for property development, refinancing strategic investments and general corporate purposes.

Of the net proceeds, approximately €450,000 will be used to part-finance the extension of the E-Pantar office building, known as Block D. A further €750,000 will go towards partially refinancing strategic investments, with a view to rebalancing the group's liquidity structure.

Another €450,000 will be used to partially finance the group's investment in property development projects, while the remaining €300,000 will be allocated to operational and general corporate funding purposes.

The E-Pantar office block is the main contributor to Hal Mann Vella Group's property rental division. Built on a footprint measuring 5,256 square metres, the building comprises approximately 14,000 square metres of office space across three levels, around 5,000 square metres of common and external areas, and an underlying basement with approximately 250 car spaces.

Most of the property is currently leased to Transport Malta in Lija under a 10-year agreement expiring on 30th September 2027. The tenant has the option to extend the agreement by a further five years.

In late 2025, the group commenced an €8 million project to extend the E-Pantar building through the redevelopment of an underutilised area. Known as Block D, the project comprises two levels of underground parking with capacity for 130 vehicles, three levels of office space with a total floor area of approximately 2,160 square metres, and a rooftop photovoltaic system.

The project is expected to be completed by the end of 2026 and is being financed through a bank loan facility and the group's internal funds. The group also expects to partially refinance its investment in Block D through the net proceeds of the note issuance programme.

The notes carry an annual interest rate of 6.25 per cent and form part of the group's unsecured note issuance programme, which has a maximum value of €7 million, according to a company announcement.

The second tranche consists of notes with a nominal value of €1,000 each. They are redeemable at par on 30th October 2032, subject to the company's option to redeem all or part of the notes between 30th October 2031 and 29th October 2032.

The second tranche follows the group's announcement of 12th October 2026 concerning the approval of a base prospectus and the issuance of the first tranche, consisting of €5 million in unlisted unsecured notes bearing interest at 6.25 per cent and maturing in 2031–2032.

Together, the two tranches amount to €7 million, corresponding to the maximum value of the unsecured note issuance programme.