Issue link: https://maltatoday.uberflip.com/i/1546491
Central Business Centres p.l.c. announces €16.75 million 5.9% unsecured bond issue CENTRAL Business Centres p.l.c. ("CBC" or the "Issuer") has announced the launch of an issue of up to €16.75 million in 5.9% unsecured bonds ma- turing in 2036, as part of the company's €30 million Bond Issuance Programme. The Tranche 2 Bonds will be issued at a nominal value of €100 per Bond and will carry a fixed interest rate of 5.9% per annum, payable annually in arrears on 7 October, with the first interest payment falling due on 7 October 2027. The Bonds will mature on 7 Octo- ber 2036, subject to the Issu- er's early redemption option as outlined in the applicable Final Terms. The Bond Issue represents the next phase in CBC's long- term strategy of investing in, developing and enhancing commercial property across Malta. CBC is principally engaged in the ownership, development and leasing of commercial property in Malta. Its portfo- lio comprises business centres and commercial properties across Haż-Żebbuġ, Gudja, St Julian's, Valletta, Mriehel, and Qormi, serving office, retail and mixed-use requirements. The Bonds are unsecured ob- ligations of the Issuer. As at 30 June 2026, CBC's investment property portfolio amounted to approximately €88 million, as reported in the Issuer's unaudited interim financial statements for the six-month period ended 30 June 2026. The vast majority of the com- pany's properties are leased, principally through medium to long-term rental agree- ments. Assuming the balance of the Bonds is subscribed for in cash, the issue is expected to generate maximum net cash proceeds of approximately €13.45 million after estimated expenses. In addition, €3 mil- lion in nominal value of Bonds will be allocated as non-cash consideration towards the ac- quisition of the Cortis 2 Prop- erty. The use of proceeds is dis- closed in the applicable Final Terms and include the re- demption of the 2017 Exist- ing Bonds (maturing in 2027), consideration and costs as- sociated with the acquisition of the Cortis 2 Property, set- tlement of the outstanding amount relating to the acqui- sition of CBC Mrieħel, further capital expenditure at CBC Valletta - The Savoy and CBC Mrieħel, and general corpo- rate funding. Following Tranche 1 (€13.25 million, issued as 5.70% Bonds 2030-2035), Tranche 2 will bring the aggregate amount issued under the €30 million Programme to €30 million. The Bond Issue is a continu- ation of CBC's long-term de- velopment strategy, which has consistently focused on building, maintaining and im- proving a tangible, landmark commercial property portfo- lio while pursuing growth in a measured and responsible manner. As a family business, CBC maintains a long-term per- spective on investment and growth. While remaining focused on current perfor- mance, the company's strat- egy is centred on strength- ening its property portfolio, maintaining its commitments to bondholders, and continu- ing to build a solid foundation for future development. CBC reported revenue of €1.6 million for the period January to June 2026, an increase of 12% over the previous year as reported in the company's unaudited interim financial statements published on 28 August 2026. For the finan- cial year ended 31 December 2025, CBC reported revenue of €2.58 million, an increase of 8.9% over the previous year, while EBITDA increased by 10.4% to €2.26 million. The company's Financial Analysis Summary forecasts further revenue growth during 2026 and 2027, supported by the contribution from its Qormi property and increasing in- come from its wider portfolio as ongoing development and refurbishment projects pro- gress. The Offer Period will run from 4 September 2026 until 12:00 on 29 September 2026, unless closed earlier by the Issuer in accordance with the applicable Final Terms. Holders of the 2017 Existing Bonds (maturing in July 2027) may apply for Tranche 2 Bonds with a minimum subscription of €1,000 and in multiples of €100 thereafter. For all other applicants, the minimum ap- plication is €2,000 and in mul- tiples of €100 thereafter. Applications may be submit- ted through Authorised Finan- cial Intermediaries. Calamatta Cuschieri Investment Services Limited is acting as Sponsor, Manager and Registrar. Application has been made for the Bonds to be admitted to the Official List of the Malta Stock Exchange, with trading expected to commence on 8 October 2026. The Base Prospectus and ap- plicable Final Terms are availa- ble at https://centralbusiness- centres.com/borrowings/. IMPORTANT NOTICE This is an advertisement is- sued by Central Business Cen- tres p.l.c., C 65702. Prospective investors should read the Base Prospectus dated 23 October 2025 and the applicable Final Terms in full before making any investment decision in order to fully understand the potential risks and rewards as- sociated with an investment in the Bonds. Investment in the Bonds involves risks, including the potential loss of capital. The Bonds are unsecured ob- ligations of the Issuer. The Base Prospectus has been approved by the Malta Financial Services Authority. Such approval should not be considered an endorsement of the Issuer or the Bonds. The value of investments may go down as well as up. This advertisement does not constitute investment advice or a recommendation. Pro- spective investors should seek financial, legal and tax advice if in any doubt as to the suit- ability of the investment. The Base Prospectus, applicable Final Terms and relevant risk factors are available at https:// centralbusinesscentres.com/ borrowings/. Central Business Centres p.l.c. has announced the launch of an issue of up to €16.75 million in 5.9% unsecured Bonds maturing in 2036. The Bond Issue will support refinancing, continued investment in the company's commercial property portfolio and further upgrades at CBC Valletta - The Savoy and CBC Mriehel THIS IS A PAID COLLABORATION maltatoday | SUNDAY • 6 SEPTEMBER 2026