Tumas Investments Plc 3.75% Unsecured Bonds 2027

Tumas Investments Plc has announced the issue of €25,000,000 of 3.75% Unsecured Bonds redeemable in 2027, with a nominal value of €100 issued at par. The issue is guaranteed by Spinola Development Company Limited.

The Bonds will be issued at par and bear interest at the rate of 3.75% per annum payable annually on 10 July each year until Redemption Date.

If you wish to apply for these bonds see information at the bottom of this article.

Company Overview

Tumas Investments Plc is a fully-owned subsidiary of the Tumas Group Company Limited – one of the largest and most diversified private business groups in Malta. The Group, which is ultimately owned by members of the Fenech Family, is primarily active in property development and leasing, hospitality, leisure, gaming and energy.

Tumas Investments Plc has been set up to act as a financing company. Its business is limited to the raising of funds for general financing purposes, the financing of capital projects and the loaning of such capital to the Spinola Development Company (SDC), the collection of interest from SDC Group entities, as applicable, and the settlement, in turn of interest payable on capital raised from third parties, typically via the issue of listed bonds.

The Company is fully dependent on the cash flows of the Guarantor. The Issuer has no dependence on other entities within the Tumas Group.

The Guarantor

Portomaso Complex

The complex was launched by SDC in 1996 and constituted one of the largest private sector real estate developments to undertake in the Maltese Islands. It is today a mature development that includes the Hilton Malta and a number of commercial properties (the marina, offices, shops and catering establishments, casino, wine lounge and the public car park). The complex also derives revenues from the sale of property.

a) Hilton Malta – The foremost operating unit within the overall complex. The 413 room five-star hotel includes conference facilities, a health centre, theme restaurants, a large indoor pool, a number of outside polls and a beach club. The hotel’s performance has consistently exceeded the average performance reported by other 5 star hotels in the local market.

b) Rental Operations – SDC leases a number of areas within the Portomaso business tower and other commercial and office area within Portomaso.

c) Management of the Portomaso Complex – SDC is responsible for the management and administration of the Portomaso complex, that is, the maintenance, cleaning, security and utilities within the common areas of the project and within each block of apartments and across the exterior landscaping the characterises the complex.

d) Sale of residential apartments – SDC has completed the development of 455 apartment within the Portomaso complex. The development costs of this extension have been funded from the Guarantor’s own cash flows and, in part by way of banking facilities raised by the Guarantor.

Use of Proceeds

The proceeds from the Bond Issue, which net of Issue expenses are expected to amount to approximately €24,550,000, will be used by the issuer for the redemption of the outstanding amount of the Maturing bonds remaining issue as at 10 July 2017, being the date of redemption of the Maturing Bonds as determined by the Issuer.

Business Overview

Tumas Investments Plc was incorporated in Malta on 17th November 2000 as a public limited liability company, registered in terms of the Companies Act and is domiciled in Malta. The Guarantor, Spinola Development Company Ltd, guarantees the Bonds as a private limited liability company registered in terms of the Companies Act and is domiciled in Malta.

How to register to buy Bonds?

Orders may be placed by contacting us on 25 688 688 or via email on [email protected].

Orders were accepted as from the 2nd of June 2017. The application form must be submitted by not later than the 21st June 2017.

Applications must be for a minimum value of €2,000 and multiples of €100.

A copy of the prospectus is available HERE.

Calamatta Cuschieri Investment Services Ltd is acting as a licensed stockbroker and financial intermediary for this bond issue.