MIDI plc, the property development firm behind the major Tigne Point and Manoel Island projects, is “doing everything in its power” to ensure that it is in a position to repay a €50 million bond that is set to come due in July 2026.
However, much depends on the conclusion of negotiations with the Government over the “voluntary termination” of MIDI’s Manoel Island concession to turn the island into a public park, for which the company is requesting a reimbursement of a yet-unspecified amount.
In its latest interim financial report, MIDI stated that its “overriding objective is to recover in full the carrying amount of the net assets attributable to the Manoel Island project.”
In other words, the company hopes to recoup its costs, and intends to use a portion of this reimbursement to pay back bondholders, who have voiced their concern that the company may end up defaulting on its obligations if the negotiations do not bear fruit.
Any deal, bond market insiders say, would need to be closed by the end of April “at the every latest.”
A financial analyst, granted anonymity to speak freely, warned that both parties would be “walking a tightrope” if they leave it until the end of April to come to an agreement.
“MIDI needs to file its financial statements by 30th April 2026. Even if they agree on a deal in the latter half of the month, it could lead to a delay in the publication of the results.”
The analyst warns that such a delay “would not exactly inspire confidence” in Malta’s corporate bond market.
They explain that the process to redeem a bond “is far from instantaneous,” and requires months of preparation.
With the bond set to be redeemed on 27th July 2026, Maltese market watchers will be keeping a close eye on developments as the initial months of the year wear on.
MIDI plc CEO Mark Portelli
Speaking to WhosWho.mt, MIDI CEO Mark Portelli points out that while the reimbursement the company is claiming from Government is envisioned to be a key part of the funds it will use to repay the bond, the company will be allocating all the net proceeds from the Q3 Fortress Gardends development and the net proceeds from the sale of other properties to the repayment of the bond.
Referring to MIDI’s forecasts for the current financial year, he notes that revenues from the completion of the final tower block at Tigne, the Q3 Fortress Garden developent, are set to put the company back in the black after three years of net losses.
Revenue for 2025 is expected to reach €36.1 million, leading to a profit before tax of €5.6 million.
The completion of another commercial block and the sale of other investment assets are also expected to contribute to MIDI’s revenues and the final sum.
This is in line with the company’s own statement, made in its interim report, that it “plans to meet its bond obligations, which are its paramount priority, through the projected net inflows from the Q3 residential development, other internal sources including planned sale of assets, and the reimbursement by Government of the carrying amount of the net assets attributable to the Manoel Island project.”
The CEO concludes: “We are doing everything in our power to ensure that the bond is repaid on its due date.”
