CF Estates Finance plc has announced that a €4.9 million notes offer has been fully subscribed by the close of the subscription period on 20th September.

The money raised, to be used for “general corporate funding purposes”, has been loaned to CF Estates Ltd, the guarantor of the loan.

CF Estates Finance plc is the finance vehicle for CF Estates, a real estate and hospitality firm which includes the developer Joseph Portelli as its largest shareholder and Executive Director.

Apart from Mr Portelli’s 30 per cent stake in the firm, Francis Agius, Clifton Cassar, Duncan Micallef, and Stephen Falzon each own 17.5 per cent.

The notes are secured by a pledge on the totality of issued shares in CF Estates Ltd.

Unlike any bond on the MSE, CF Estates Finance plc’s new bonds do not pay holders any interest. Instead, they are offered at a price that is lower than the price the company will pay to redeem them. The redemption price also varies, depending on when, exactly, they will be redeemed.

The bonds are being offered to investors at €89.80, despite their nominal value of €100. CF Estates Finance plc promises to redeem them at some point between 20th December 2024 (that is, in three months) and 20th March 2026 (in a year and a half).

The company will pay a different amount for each three-month period between those two dates, with the price increasing the closer it gets to the full term.

Therefore, if CF Estates Finance redeems the bonds between 21st December 2024 and 20th March 2025, it will pay €93.20 per bond. Between 21st March and 20th June 2025, it will pay €94.90. Between 21st June and 20th September 2025 it will pay €96.90. Between 21st September and 20th December 2025 it will pay €98.25. And between 21st December 2025 and 20th March 2026, it will pay €100.