Tumas Investments plc has announced the issue of 6.2 per cent €20 million bonds, maturing between 2017 and 2020. The issue comes with an over-allotment option of an additional €5 million. The nominal value per bond is €100 issued at par. The bonds are unsecured but are guaranteed by Spinola Development Company Limited.

Group chairman George Fenech said proceeds from the bond issue will be primarily used for the redemption of the Tumas Investments plc 6.7 per cent Bond 2010-2012 on July 9.

The remaining proceeds will go towards the part re-financing of existing borrowings and the general corporate funding purposes of Spinola Development Company Limited and its subsidiary companies.

Preference will be given to holders of Tumas Investments plc 6.7 per cent Bond 2010-2012 who indicate their willingness to surrender their existing holding in favour of a holding in the new bonds.

The board announced it will consider June 4 as the cut-off date and that the last day of trading to attain eligibility will be June 1.

Bondholders on the register on the cut-off date will be guaranteed full allotment of their applications for an amount equivalent to their existing holding, rounded up to the nearest €100 or €1,000, subject to a minimum application of €1,200.

Copies of the prospectus and application forms will be available from June 11 from authorised intermediaries. The prospectus is available online at www.tumas.com and www.rizzofarrugia.com

Tumas Group's original core operation was that of property development and recently real estate leasing.

The group's activities have since been diversified with major inroads made particularly in tourism and leisure as well as the automotive and port management operations - areas where the group has enjoyed success.