Bonds pre-placements taken up

Pre-placements for the bonds issued by GAP Developments closed on Wednesday with banks and stockbrokers taking up the Lm9 million pre-placement allocation.

The bond issue is for Lm15 million, but applications for the remaining Lm6 million open on Monday to the public, a statement issued on behalf of GAP Developments said.

The bonds are being issued by GAP Developments to raise part financing for the development of land acquired by tender from the government, close to Cambridge Battery in Tignè, Sliema.

Called Fort Cambridge, the development will include three blocks of up to 23 storeys, with a total of 340 apartments, on 20 per cent of the acquired land area. The remaining land is a heritage conservation zone and is subject to restrictions. The project includes the restoration of Cambridge Battery under the supervision of Alex Torpiano, who is also the architect for the Fort Cambridge development.

This bond issue is the largest ever by the private sector on the island, with the exception of the recent Lm20 million bond issue by HSBC.

The bonds, which are secured and which carry an interest rate of seven per cent, have a nominal value of Lm100 or €100. They mature in 2013, and will be listed on the alternative companies list of The Malta Stock Exchange.