Gasan announces new bond issue

Gasan Finance plc yesterday announced that it is once again opening up to prospective investors with a Lm3.5 million bond issue that has the option to increase to Lm5 million if oversubscribed.
This is the fourth bond issue by the Gasan Group since 1994. The bond issue, nothing out of the ordinary, is mainly intended to provide current Gasan bond holders, of the 6.15 per cent Bonds due in 2003 and 2004, the option to roll over their investment into the new issue.
Existing Gasan bond holders will be given preference to reinvest their bonds up to the full amount before the new bond issue goes public on 30 October.
The new bonds have a coupon rate of 6.4 per cent per annum and are redeemable between 2008 and 2011. The minimum investment being allowed is Lm500. The bond is expected to be listed on the Malta Stock Exchange.
Talking at the launch of the bonds, Gasan Group Chairman Joe Gasan expressed confidence that the additional Lm1.5 million would be taken up as well. He explained that the additional investment would be used by Gasan Finance plc to purchase a number of apartments situated at Il-Pjazzetta in Sliema from another Group subsidiary, Gasan Enterprises.
The apartments would serve to increase the assets of Gasan Finance plc, which is entrusted with raising money from capital markets to finance the Group’s operations and capital projects.
The bond issue has as joint managers and underwriters, Bank of Valletta and HSBC. This is only the second time that both major banks are co-operating together on a bond issue. A third bank, Lombard Bank, are acting as registrars.
The prospectus is available from branches of commercial banks and licensed stockbrokers as of today. The bond is expected to open on 30 October and closes on 5 November.