AX Investments has launched €40 million bond issue with at an interest coupon of 6% of a nominal value of €100 per bond at par.
The bonds are guaranteed by AX Holdings Limited, the parent company of AX Investments plc.
€21 million from the net bond proceeds will be used to finance the development of a retirement complex and care home in Naxxar, while another portion will be used to finance the redemption of the €11.6 million 6.7% bonds 2014-2016 which will be redeemed in December 2014.
The company is giving existing bondholders preference to subscribe to the bonds by surrendering their respective maturing bonds.
Hilltop Gardens Care Home & Residences will feature 146 retirement residences and 104 care home rooms. It will be built over a period of 21 months and will be completed in 2015 with a total investment of €42 million.
The complex will include gardens, an open air recreational space, pool, fitness centre, hobby centre, hair salon, pub, library, restaurant and a chapel.
Applications for bonds can be made for a minimum of €1,000.