GlobalCapital's '10 million bond offering was closed within two hours of opening yesterday after it was oversubscribed.

The over-allotment option of '7 million was also taken up, bringing the total bond issue to '17 million.

The allocation policy will be announced on Thursday.

GlobalCapital chairman Christopher J. Pace expressed his delight over the enthusiastic take-up. "It shows a great deal of trust in our ability to forge ahead with our plans for taking GlobalCapital further forward. We now have the firepower we need to develop new and exciting areas of business."

This was the first bond offering by GlobalCapital. It was underwritten by HSBC Malta Bank plc to the extent of 50 per cent, and sponsored by HSBC Stockbrokers (Malta) Ltd. The bond matures in 2016, subject to an early redemption option that may be exercised in 2014 or 2015. The coupon rate is 5.6 per cent.

Global Financial Services Group plc has applied for the listing and trading of the bonds on the Malta Stock Exchange official list.

The net proceeds of the bond will be used for general financing purposes by GlobalCapital. This includes the reorganisation of GlobalCapital's inter-company borrowings and funding of GlobalCapital's expansion in its principal areas of business notably life insurance, development of the pension fund administration and servicing capabilities, and investment in quality real estate in Malta and elsewhere.

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