Farsons bonds snapped up

Farsons bonds were snapped up within a few hours of the offer being opened for subscription yesterday.

The group had offered Lm1.5 million in bonds at 6.25 per cent and Lm3 million in bonds at 6.6 per cent.

Farsons chief executive Louis Farrugia said the first offer of Lm1.5 million had been increased to Lm2 million to accommodate the unprecedented response. The Lm3 million bond offer was likewise increased to Lm4 million.

Preferred applicants, including current shareholders and employees, pre-placement by financial institutions as well as demand by the public were all higher than anticipated, he said.

Mr Farrugia said that the objectives of funding the redemption of Lm3 million Cumulative Redeemable Preference Shares 2001-2003 at six per cent net and the refinancing of the company's borrowings could now be fully realised.