United Finance plc, a subsidiary of the United Group, is issuing a new €10 million eight-year bond.
United Finance was incorporated on June 26, 2000 and its ultimate shareholder is United Group Ltd. The company was set up to act as a finance company for the group. In September 2000, the company issued a Lm3 million bond with a Lm1 million over-allotment. The issue was fully subscribed and the company exercised the over-allotment option thereby resulting in the current €9.3 million bond. This bond was subsequently listed on the official list of the Malta Stock Exchange and is now due for redemption on October 31.
The origins of the group date back to 1926 when the late Carmelo Gatt Baldacchino operated a transportation company in the field of bus services and chauffeur-driven vehicles. In the 1960s, with the rapid growth in the tourism industry, the company, under the leadership of the late Charles Gatt Baldacchino, diversified into car rental and destination management services. In 1982 it expanded its activities again to include a motor vehicle dealership. Today the group is still privately owned by the Gatt Baldacchino family.
The group is best known for its activities in the automotive sector through the representation of the renowned brands of Opel and Saab vehicles and Hertz rent-a-car and lease. In 2006, the group also acquired the CAA towing and recovery business.
The company has also recently diversified into fashion retail, operating under the Oasis and Principles brands. It has also acquired the Debenhams franchise and in autumn 2009 will be opening its first department store at The Point Shopping Centre in Tigné Point, Sliema.
The group is also involved in property development and is one of the leading investors in the Pendergardens and the Exchange Developments in St Julians.
Edmund Gatt Baldacchino, director and chief executive officer of United Group and United Finance, said: "United Finance has been a key success factor to assist the group to achieve its vision. It has enabled the group to attain higher levels of efficiency and more effective customer account collection.
"The new bond issue will help us ensure that United Group remains a leading player in the automotive industry and reach higher levels through our new business initiatives in the retail and property development investments."
The proceeds of the bond will be used to re-finance this year's bond, to finance the general corporate funding requirements of the United Group and other companies forming part of the United Group and, to fund new investments by the group company or other companies forming part of the group.