United Finance to issue €10 million bond

United Finance plc, a subsidiary of the United Group, is issuing a new €10 million eight-year bond.

United Finance was incorporated on June 26, 2000, and its ultimate shareholder is United Group Ltd. The company was set up to act as a finance company for the group. In September 2000, the company issued a Lm3 million bond with a Lm1 million over-allotment.

The issue was fully subscribed and the company exercised the over-allotment option, resulting in the current €9.3 million bond. This bond was subsequently listed on the official list of the Malta Stock Exchange and is now due for redemption on October 31.

The group is best known for its activities in the automotive sector through the representation of Opel and Saab, and Hertz rent-a-car and lease. In 2006, the group also acquired the CAA towing and recovery business.

The company has also recently diversified into fashion retail, operating under the Oasis and Principles brands. The company has also acquired the Debenhams franchise and in autumn 2009, it will be opening its first department store at The Point Shopping Centre in Tigne Point, Sliema.

The group is also involved in property development and is one of the leading investors in the Pendergardens and the Exchange Developments in St Julian's.

The proceeds of the bond will be used to re-finance the 2008 bond, to finance the general corporate funding requirements of the United Group and other companies forming part of the United Group and, thirdly, to fund new investments by the group company or other companies forming part of the group.

The new bonds will be issued at €100 per bond and will bear an interest rate of 6.75 per cent payable annually on June 30 of each year. The bond issue will be for €10 million but this may be increased by a further €2 million in the event of oversubscription. The bonds will be redeemed on any date between June 30, 2014, and June 30, 2016.

Holders of the current bond will be given preference over the general public to subscribe to the new bond issue by surrendering the maturing 6.75 per cent United Finance Bond 2008.

Subscriptions for the bond issue will open on Thursday and are to be submitted to any financial intermediary in Malta and Gozo by July 17, 2008.

Copies of the prospectus are available at www.unitedfinance.com.mt, the Malta Financial Services Authority at www.mfsa. com.mt and from authorised intermediaries.

More information may be obtained from United Finance plc, United House, 66, Gzira Road, Gzira.