TUM Finance plc has announced that its €12 million bond issue has been fully subscribed, with traded in the bonds on the Malta Stock Exchange expected to commence on 29th November 2024.

The secured bonds mature in2034 and are callable from 2031, and carry a coupon rate of 5.2 per cent.

The bonds were sold to Authorised Financial Intermediaries, which were allocated the full amount of bonds applied for in terms of their respective subscription agreements.

The proceeds from the bond issue will be used for several purposes.

As per the prospectus, around €943,000 will be used to re-finance the remaining balance on a credit facility from Lombard Bank, used to finance the acquisition of a portion of land in Santa Venera.

The company will also allocate around €2 million to the development and finishing of villas on the above-mentioned land in Santa Venera, and another €2 million to the purchase of various properties around the Ta’ Natu Commercial Outlet, in Mosta.

Around €1.85 million will be used to refinance the fit-out costs of the Risparmio Casa outlet located at Ta’ Natu and to part-finance the fit-out costs of the Risparmio Casa outlet to be located at Center Parc.

A further €1 million will be used to re-finance an existing facility taken out with BNF Bank Malta to finance the acquisition of a property in St Julian’s that TUM Finance intends to develop and rent as a retail outlet.

The remaining €3.8 million will be used for the general corporate funding purposes of the group.