Tumas Group launches Lm4.2m issue to refinance credit facilities

13 - 19 December 2000

By David Lindsay

Tumas Investments, a newly set up and fully owned subsidiary of the Tumas Group, yesterday issued Lm4.2 million in 6.7 per cent secured notes in order to refinance bank credit facilities attributable to the Portomaso development.

Portomaso Marina development

Proceeds accrued from the issue, priced at Lm100 each and which mature in November 2006, are being passed on to the Spinola Development Company and are to be used within the Portomaso project – with a view to refinancing existing bank credit facilities of the Spinola Development Company.

The repayment of the notes and interest is guaranteed by the Spinola Development Company, another fully-owned subsidiary of the Tumas Group, and this guarantee is supported by a special hypothecary charge on a number of floors of the Portomaso Business Tower.

George Fenech, Managing Director of Tumas Group, highlighted the significant contribution that the group has date made to the tourist industry.

He made particular emphasis to the Portomaso project, which he said had received extensive praise and attention for the very high standards achieved, in both the local and international media.

Mr Fenech mentioned that he had just returned from London where, for the second consecutive year, the Tumas Group was presented with The Best Marina Award in the International Property Awards of the Year 2000. He explained that this was clear evidence of the excellent standards that the Portomaso development had achieved.

Joseph Zahra, Bank of Valletta Chairman, while congratulating Mr Fenech on the Portomaso complex, described it as undoubtedly one of the most prestigious sites on the island. He stated that Bank of Valletta had acquired the necessary expertise in handling transactions of this nature and that it was now well placed to assist Maltese entrepreneurs in the financing of similar long-term projects.

Mr Zahra added that the Bank was allocating substantial resources to develop expertise in investment banking - a business sector that is expected to grow extensively in the future.

The Portomaso project is built on a site previously occupied by the Malta Hilton International Hotel and consists of a unique waterfront development situated in a very central position. The project consists of a number of upmarket apartments, a 110-berth yacht marina, the new five-star Malta Hilton, a Business Tower and a commercial centre.

The issue was entirely acquired by Bank of Valletta. The Bank is also acting as a Trustee in terms of a Trust Deed entered into with Tumas Investments.

The Bank will additionally be seeking to place part of the issue on a sub-participation basis amongst institutional investors licensed under the Investment Services Act, 1994 and others whose ordinary business involves the acquisition and disposal of instruments similar in nature to these Notes.

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