Von der Heyden Executive Director Tonio Fenech has confirmed that the recent three-day delay in dividend payments remains fully in line with the company’s prospectus.
Speaking to WhosWho.mt, the former Minister for Finance, Economy and Investment addressed concerns following a delayed dividend payment for the €35 million unsecured 5 per cent bonds maturing in 2032, which was originally scheduled for Tuesday 16th December but was not immediately received by bondholders.
Mr Fenech explained that while the prospectus specifies 16th December as the payment date, it also allows for a seven-day window for the coupon to be credited to bondholders’ accounts.
Defending the delay, he stressed that the company is still operating well within these parameters and that payments are expected to be received by bondholders by today.
“There was an issue within the banking system, which resulted in a delay in processing the payments,” Mr Fenech tells WhosWho.mt.
“We apologise for the inconvenience caused, but I would like to reassure bondholders that we are still within the stipulated timeframe.”
When asked whether bondholders should have any cause for concern, Mr Fenech was clear that there is no reason to worry.
“This was simply a technical issue,” he concluded.
Paul Bonello slams Mr Fenech’s justifications as ‘lame’
Paul Bonello, a financial advisor known for his outspoken views on economic and political matters – also Managing Director at Finco Treasuries – offered a sharp critique of Mr Fenech’s explanation.
“Even though he may be technically correct, no issuer has been known to rely on such a lame excuse, whether in Malta or abroad,” Bonello said. “The company should concentrate on giving a credible explanation, no more no less.”
He added that the response, as relayed to WhosWho.mt, “not only does not put my mind at rest but raises increased doubts.”
Von der Heyden Group is a real estate group that has investments and developments in multiple cities across Europe. In Malta, it operates the Cugó Gran Macina boutique hotel and three restaurants under the Hammett's Collection brand. Timan Investment Holdings Ltd is Von der Heyden Group Finance’s parent company, and the guarantor for the €35 million unsecured bonds issued in 2022.
The proceeds from the bond issue, totalling approximately €34.4 million after expenses, were primarily used to redeem outstanding 2017 VDHG bonds (€25.25 million). Additionally, €4 million will help finance the ongoing development of the Andersia Silver – which now changed names to AND2 – a 116m office building in Poznań, Poland. The remaining €5.15 million will support the group’s general corporate funding needs.
