BusinessToday Previous Editions

BUSINESS TODAY 31 August 2023

Issue link: https://maltatoday.uberflip.com/i/1506723

Contents of this Issue

Navigation

Page 2 of 11

3 NEWS 31.8.2023 PAUL COCKS VON der Heyden Group Finance p.l.c. has announced it has received regu- latory approval from the Malta Finan- cial Services Authority for the issue of a maximum of €5,000,000 unsecured notes due in 2026 of a nominal value of €1,000 per note. ese will be issued at par, pursuant to and in terms of a prospectus dated 22 August 2023. is follows the launch by the compa- ny, in October 2022, of a ten-year €35 million bond issue with an annual inter- est rate of 5% on the Official List of the Malta Stock Exchange. An industry expert in fact told Busi- ness Today that this new unsecured notes could very well be needed to pay the coupon on the previous bond. Another source in the industry said he could not confirm the reason for the new notes. "But if it's true that the company need- ed to issue €5 million unsecured notes to cover its obligations on a bond listed less than a year ago, then perhaps the regulatory authority needs to revise its criteria and expediency when granted approval for bond issues," he said. €5,000,000 unsecured notes e Global Note in the new issue will be issued to Calamatta Cuschieri In- vestment Services Limited, as the Nom- inee and Placement Agent in an aggre- gate amount of up to €5,000,000 with a nominal value of €1,000 per Note, at the rate of 7.4% per annum and redeemable at par on 22 September 2026. Investors in Malta can participate in the Global Note by virtue of the sub- scription to Participation Notes (as de- fined in the Prospectus). e Notes shall be issued with the guarantee of Timan Investments Hold- ings Limited (C 63335). e Global Note and Participation Notes will not be listed on the Malta Stock Exchange or on any other regu- lated market. e offer period will close on 15 Sep- tember 2023. Applications for subscrip- tions to the Participation Notes may be made through the Nominee and Place- ment Agent subject to a minimum ap- plication of €5,000 and in multiples of €1,000 thereafter. Von der Heyden unsecured notes issue raises questions after 2022 €35 million bond issue THE Gozo Business Chamber's doc- ument for the 2024 budget addresses three strategic areas for the island re- gion of Gozo: targeted fiscal incen- tives, combating problems related to accessibility, and infrastructure. is does not diminish from the im- portance of other areas. Strategically Gozo's drive to achieve net carbon neu- trality prior to Malta should continue. In the energy sector Gozo should be the driving force for the whole nation. e Chamber believes that its long- term proposal of having a specialised institute on research which would test and deploy sustainable technologies on the island is a very valid one. e same applies to its proposal for the creation of specific incentives to attract enter- prises to the Gozo Innovation Hub in Xewkija. e success of specific Gozitan-based enterprises in areas such as Informa- tion Technology shows that the estab- lishment of such enterprises on the island is not impossible. While Gov- ernment has invested significantly in the Hub, and the second fibre optic link between the two islands (providing the required underlying infrastructure), enterprises need to be attracted to the Hub in order to reach its full potential. e budget proposals earmarked in this document are addressing both ur- gent issues related to the impact of cer- tain measures on the environment, the competitiveness of Gozitan-based en- terprises, and also long-term measures which will see Gozo progressing in the right direction in a sustainable manner. Gozo can only be competitive by being distinctive. Nonetheless the Chamber felt it was important to de- lineate exactly where to achieve this distinctiveness. To this end while eco- nomic growth is important this cannot be achieved at all costs or in sectors, which will cause long-term harm to the island. is is a summary of the budgetary measures being proposed by the Gozo Business Chamber: Targeted Fiscal Incentives • Align incentives in the property sector to Gozo's socio-economic and environmental needs. • Incentivise the finishing of the existing supply of property, whereby the end customer would be able to recoup part of the VAT paid, if the property is finished within a two year time frame. If the property finishings are done in such a manner that the proper- ty would be rendered more sus- tainable the part of the VAT to be recouped would be greater. • Incentivising the transfer be- tween property co-owners. This can take the form of reduced capital gains tax or stamp duty tax. By providing a financial benefit to co-owners who en- gage in these transactions, the government encourages the preservation of long-term prop- erty relationships and the main- tenance of a property's intrinsic qualities. This approach recog- nizes the value of fostering sus- tainable property management practices and creating incentives for owners to prioritize preser- vation over short-term financial gains. Combating Problems Related to Accessibility • Supporting the wholesale/im- port and retail sector through a scheme which would assist them to cover the added transporta- tion costs (inlcuding the cost of labour) to provide their services on the main island of Malta. • Assist Gozitan artisans to partic- ipate in artisan fairs being held on the main island of Malta. Infrastructure • Implement the project for an ecological green park in Victoria with a multistory underground car park underneath. • Implement the project for a new hospital for Gozo. Targeted fiscal incentives at core of Gozo Business Chamber's Budget proposals

Articles in this issue

Archives of this issue

view archives of BusinessToday Previous Editions - BUSINESS TODAY 31 August 2023