Tumas Investments plc allotment policy for €25m bond

The board of directors of Tumas Investments plc on Monday outlined the allotment policy for applications received for its recent €25 million 2017-2020 bond issue.

Overall demand for the bonds was high, reaching a total of 4,436 applications for €42,965,400. The company closed the subscription lists shortly after opening, exercising the over-allotment option in full.

Tumas Investments plc received a total of 1,109 applications for a value of €12,903,000 from preferred applicants, the holders of the maturing 6.7 per cent Bonds 2010-2012, which represents an acceptance rate of around 80 per cent after taking into consideration the receipt of top-up amounts. These applications will be met in full.

Out of a total of 4,436 applications, 3,327 represented new applications from the general public. These applications represented a value of €30,062,400. The company decided to allot a minimum of €4,000 to each applicant with a further allotment of 5.312 per cent rounded to the nearest €100 nominal, therefore around 44.60 per cent of total applications from the general public will be met in full.

Taking into account the applications received from preferred applicants, the number of applications which are being allotted in full total around 58 per cent of all applicants.

Interest on the bonds starts on Saturday. Allotment letters and refunds of un-allocated monies will be paid by not later than tomorrow.

The bonds are expected to be admitted to the Official List of the Malta Stock Exchange next Thursday, and trading is expected to start the following day.