Grand Harbour Marina plc launches €10m bond issue

Grand Harbour Marina plc, the developer and operator of the Vittoriosa marina, has announced a €10 million bond issue, with an over-allotment option of €2 million.

The bonds, bearing an interest rate of seven per cent per annum, mature in 2017-2020. The company is to give preference to existing shareholders and berth holders.

Grand Harbour Marina plc said it intended to use the bond proceeds to refinance its existing debt and to invest further in the company and in Malta. It said it would potentially co-invest with Malta-headquartered Camper and Nicholsons in international marinas.

Chairman Lawrence Zammit tells The Times Business in an interview that GHM is seeking to realise some of the "steady flow" of enquiries for the sale of super-yacht berth licences at its premier marina.

"Our intention is also to look for investment opportunities within the Grand Harbour itself," Mr Zammit says. "That could mean one of the marinas that the government puts up for privatisation, or even areas within the precincts of Cottonera. The company is studying other opportunities within the GHM-controlled area itself. We have filed an application with Mepa for the reconfiguration of the marina to increase berthing space. In line with our intentions as listed in our initial public offering in 2007, we are also looking at the possibility of investing beyond our shores."

Grand Harbour Marina plc, in which Camper and Nicholsons holds a 79 per cent stake, said in November that pontoon berths remain full and super-yacht berthing for the previous summer stood at 104 yachts. Winter bookings have maintained the super-yacht berth occupancy for the period compared to last winter. Rental price and square metre occupancy have been increased, the company said.

The Vittoriosa marina, a home port to several super-yachts up to 100 metres, is Camper and Nicholsons's flagship marina.

The company reported a half-yearly post-tax loss of €168,167 to last June. Earnings before interest, tax, depreciation and amortisation stood at €50,247 for the first six months of this year, more than double the figure for the corresponding period last year.

Mr Zammit says GHM's share price has risen by around 25 per cent from its IPO price three years ago.

Copies of the prospectus and applications will be available to investors from stockbrokers, banks and other financial intermediaries from January 26. The prospectus is also available online at www.ghm.com.mt and at www.rizzofarrugia.com from January 25. The closing date for applications is February 15.

HSBC Bank Malta plc is manager and registrar to the issue. Stockbroker Rizzo Farrugia and Co. is the sponsor.