Subscriptions for the 6.75 per cent, €10 million bond issued by United Finance plc, a member of the United Group, closed yesterday as scheduled.

A spokesman said the bond issue was fully subscribed and the company will be exercising the over-allotment option of €2 million bringing the total bond issue to €12 million.

In accordance with the prospectus issued on June 27, preference will be given to holders of United Finance 2008 bonds, which opted to surrender the maturing bonds as consideration for an equivalent number of the new bonds.

The basis of acceptance of applications for new applicants together with the allocation policy to be adopted will be announced shortly.

Edmund Gatt Baldacchino, director and chief executive officer of United Group and United Finance, said the new bond issue will help ensure that the Group remains a leading player in the automotive industry and reaches higher levels through new business initiatives in the retail and property development investments.

The new bonds, issued at €100 per bond and bearing an interest rate of 6.75 per cent payable annually on June 30, will be admitted to the primary market of the Malta Stock Exchange.

An application for admittance has been made with the Malta Stock Exchange and it is expected that trading in the bond will commence shortly, the company said.

The €12 million bond issue will be redeemed on any date between June 30, 2014 and June 30, 2016.

The bond issue was underwritten by HSBC Bank Malta plc. The bank is also acting as manager and registrar. The sponsoring stockbroker is Charts Investment Management Service Ltd, Camilleri Preziosi are legal advisers and KPMG are the auditors of the issuer.

More information can be obtained from United Finance plc in Gżira.