Merkanti Holding plc has announced that an interest payment due on its 5.7 per cent Secured Bond 2033 has been delayed.

In a company announcement issued on Wednesday (13th August), the company said that the bond interest payment, which had been due for settlement on 12th August 2026, had not been made on schedule.

“The company is working on a solution to rectify this situation and will inform the market of further updates shortly,” Merkanti Holding said.

No revised date for the interest payment was provided in the announcement.

Merkanti Holding classified the announcement as containing inside information under the EU Market Abuse Regulation.

The delayed payment is for Merkanti Holding's €25 million secured bond issue, which was originally issued in 2019 and underwent significant amendments in 2024 following approval from bondholders.

Under those changes, the bond's maturity was extended by seven years, from 2026 to 2033, while its interest rate was increased from four per cent to 5.7 per cent to reflect the prevailing interest rate environment.

At the time the amendments were proposed, Merkanti Holding said they would have no impact on the security package underlying the bonds, including existing pledges and German law mortgages, with the bonds remaining fully secured throughout their extended term.

Bondholders were also offered a one-time bonus payment equivalent to 0.8 per cent of the nominal value of their holdings as part of the amendments.

Merkanti Holding is the holding and finance company of Merkanti Group, which includes Merkanti Bank Ltd as well as two industrial real estate companies in Germany.

Merkanti Bank, formerly known as BAWAG Malta Bank, operates as a specialist trade and structured finance bank and is a subsidiary of New York Stock Exchange-listed Scully Royalty Ltd.

The bank had previously explored a potential merger with Sparkasse Bank Malta, with an agreement announced in 2022. The transaction was ultimately abandoned in 2023, with Merkanti citing timing considerations and changes in global interest rate policy rather than regulatory issues.