Smartcare Finance launches €11 million secured bond issue

Issue of €11,000,000 5.75% bond issue

Smartcare Finance plc has launched an €11 million secured bond issue carrying an annual coupon of 5.75%.

The bonds have a nominal value of €100 and are due for redemption on 21 October 2036. The minimum application is €1,000, with additional subscriptions accepted in multiples of €100.

MFSA approves €11 million bond issue

The launch follows the approval of the prospectus by the Malta Financial Services Authority (MFSA), paving the way for the public offer of the €11 million 5.75% Secured Bonds 2036. The bonds are also expected to be admitted to the Official List of the Malta Stock Exchange.

Proceeds earmarked for Sicily development

The issue is expected to raise around €10.6 million after expenses, with the proceeds to be used across a number of projects and financing requirements within the Smartcare Group.

Around €1.04 million will be allocated to Bella Sicilia Srl to partly fund the acquisition of the Laguna Project, together with an adjoining agricultural property and related transaction costs. A further €5.51 million will go towards the construction and development of the project.

Segond Boutique Hotels Limited is expected to receive approximately €750,000 to repay an existing Lombard Bank facility. The financing had been used to cover cost overruns, improvements and pre-opening expenses related to the Segond Boutique Hotel.

The remaining €3.3 million will be used for the group’s general corporate funding needs.

Smartcare Finance serves as the financing arm of a Maltese group active across elderly care, property development, construction, hospitality and food and beverage. The group’s operations include Dar Pinto, a private elderly-care facility that provides a recurring source of income.

Source: MeDirect Bank Malta