GlobalCapital €17 million bond offer closes in two hours

Applications for the €10 million bond issue offered by the Global Financial Services Group plc (GlobalCapital), which is listed on the Malta Stock Exchange, closed within two hours of opening last Thursday. The over-allotment option of €7 million has also been taken up, bringing the total bond issue to €17 million. The allocation policy will be announced on Thursday.

GlobalCapital chairman Christopher J. Pace expressed satisfaction at the take-up. "It shows a great deal of trust in our ability to forge ahead with our plans for taking GlobalCapital further forward. We now have the firepower we need to develop new and exciting areas of business."

This was the first bond offering by GlobalCapital. It was underwritten by HSBC Malta Bank plc to the extent of 50%, and sponsored by HSBC Stockbrokers (Malta) Ltd. The bond matures in 2016, subject to an early redemption option that may be exercised in 2014 or 2015. The coupon rate is 5.6%.

Global Financial Services Group has applied for the listing and trading of the bonds on the Malta Stock Exchange official list.

The net proceeds of the bond will be used for GlobalCapital's general financing. This includes the reorganisation of GlobalCapital's inter-company borrowings, and funding of GlobalCapital's expansion in its principal areas of business.

The expansion covers, but is not limited to, life insurance, development of the pension fund administration and servicing capabilities, and investment in quality real estate in Malta and elsewhere.