Fort Cambridge: bond issue pre-placement taken up

Pre-placements for the bonds issued by GAP Developments closed on Wednesday, with banks and stockbrokers taking up the full Lm9 million pre-placement allocation. The bond issue is for a total of Lm15 million, but applications for the remaining Lm6 million open tomorrow to the general public.

This bond issue is the largest ever by the private sector in Malta, with the exception of the recent Lm20 million bond issue by HSBC Bank. 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.

The issue is being underwritten by Charts Investment Management Service Ltd and sub-underwritten by Collins Stewart (CI) Ltd, the offshore division of the global financial services group Collins Stewart plc, a member of the FTSE mid-250 index of the main market of the London Stock Exchange.

The manager and registrar is HSBC Bank Malta plc, and the joint sponsoring stockbrokers are Wilfred Mallia of Charts Investment Management Service, and Curmi & Partners.

The bonds are being issued by GAP Developments to raise part-financing for the development of land acquired by tender from the government, in the vicinity of Cambridge Battery on the Tigné peninsula in Sliema. The development, called Fort Cambridge, 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 subject to restrictions. The project includes the restoration of Cambridge Battery under the supervision of architect Alex Torpiano, who is also the architect for the Fort Cambridge development.