Lm3.8 million bond issue by CareMalta

CareMalta Finance, plc, a subsidiary of CareMalta Group Ltd, has launched a total of Lm3.8 million in bonds paying 6.5% interest and maturing between 2008-2011.

CareMalta intends to use these bonds to fund its expansion in the elderly care sector, as the elderly population continues to rise.

CareMalta will be installing at least 250 additional beds in present and future homes through the acquisition, construction and completion of a private home for the elderly and by increasing the number of beds in already existing homes it operates.

CareMalta Group chairman Nazzareno Vassallo stated: "The issue of these bonds comes at a very important time in our company's development. We are now embarking on this next major step in the expansion of our activity after having built a solid reputation and a leadership position in the sector of elderly care. We aim to continue retaining CareMalta's leadership position in the future by providing the elderly with purpose-built homes offering quality care solutions."

Ing. Alexander Tranter, CEO of CareMalta, commented: "Following presentations made to institutional investors on CareMalta's expansion plans, we have received encouraging reactions. It is important to point out that these CareMalta bonds are to fuel expansion, not to refinance bank debt.

"We are looking very positively at the future of CareMalta as it continues to implement its care philosophy of offering quality care and support services to elderly in purpose-built homes. We also believe that there will be increased public/private sector collaboration in this area, as Government continues to develop cost effective and quality solutions for elderly, with the private sector."

CareMalta today operates four homes for the elderly - Casa Arkati in Mosta, Villa Messina in Rabat and the two Government-owned homes in Zejtun and Cospicua. The company employs nearly 200 full-timers and looks after 450 elderly in these four homes.

CareMalta Finance, plc bonds will be guaranteed by CareMalta Group Ltd., a subsidiary of Vassallo Builders Group that has pioneered the building of purpose-built homes to offer private, quality elderly care.

The bond issue will be underwritten by Bank of Valletta, which will also act as manager and registrar, while the sponsoring stockbroker is Wilfred Mallia of Charts Investment Management Services Ltd.

Each bond, which is being issued at par, has a nominal value of Lm100 and will be redeemed at par.

Applications will be available from tomorrow at branches of local commercial banks and offices of all licensed stockbrokers and financial intermediaries.

Applications will be accepted from October 28 for a minimum of Lm500 and multiples of Lm100 thereafter. Subscription lists are planned to close on November 1, but will close earlier if the bond issue is oversubscribed.