Applications for the euro 10 million bond offering by Global Financial Services Group plc (GlobalCapital), which is listed on the Malta Stock Exchange, closed within two hours of opening yesterday morning. The over-allotment option of euro 7 million has also been taken up, bringing the total bond issue to euro 17 million.
The allocation policy will be announced on 25 May.
GlobalCapital chairman Christopher J. Pace said: “I am delighted at this enthusiastic take-up of our bonds. It shows a great deal of trust in our ability to forge ahead with our plans for taking GlobalCapital further forward. We now have the firepower we need to develop new and exciting areas of business.”
This was the first bond offering by GlobalCapital. It was underwritten by HSBC Malta Bank plc to the extent of 50 per cent, and sponsored by HSBC Stockbrokers (Malta) Ltd. The bond matures in 2016, subject to an early redemption option that may be exercised in 2014 or 2015. The coupon rate is 5.6 per cent.
Global Financial Services Group plc has applied for the listing and trading of the bonds on the Malta Stock Exchange official list.
The net proceeds of the bond will be used for general financing purposes by GlobalCapital. This includes the reorganisation of GlobalCapital’s inter-company borrowings, and funding of GlobalCapital’s expansion in its principal areas of business. This expansion covers, but is not limited to, life insurance, development of the pension fund administration and servicing capabilities, and investment in quality real estate in Malta and elsewhere.
Global Financial Services Group plc operates in four main areas of business: investment, insurance, property and pensions. It provides investment portfolio services for private clients, fund advisory services, back office administration, and corporate guidance for companies seeking listing on the Malta Stock Exchange.
Global Financial Services Group plc is the Malta representative of health insurer BUPA, provides life insurance, acts as an insurance broker, and advises on pension planning. Its property business covers development, rental, resale, management and consultancy, and the operation of a real estate agency.