Excel Finance wants to raise €50 million through a secured bond issue, as it seeks to refinance existing loans, fund ongoing real estate projects and obtain a corporate funding injection.

The bond issue offers a 5.4% annual interest rate, maturing in 2031.

Led by Gozo-based development moguls Joseph Portelli, Mark Agius and Daniel Refalo, Excel owns a range of companies operating primarily in the real estate and construction sectors.

The company intends to place a hypothec on its Q Hub development in Qormi and other residential properties it owns as a guarantee to bondholders.

The bonds, which have a nominal value of €100 per bond, will be guaranteed by Excel Investments Holdings Limited.

The minimum subscription amount is €5,000, and the offer period will run from December 4 to December 20, 2024.

Excel says it intends to use €25 million to refinance bank loans it owes FIMBank and Bank of Valletta, which it used to purchase the Q Hub site, construct the mixed use office block and finish it as well as other properties.

A further €8 million will be used to develop ongoing real estate projects to shell form, while €16.1 million have been allocated general corporate funding purposes. The remaining €900,000 will be used to finance bond issue costs.

Calamatta Cuschieri Investment Services Limited and Bank of Valletta p.l.c. are acting as Sponsor & Co-Manager and Registrar & Co-Manager respectively.

Interested investors can subscribe through any of the authorised financial intermediaries. The full prospectus is available on the company's website at www.excel-group.eu.

In a statement, the Excel group board of directors said the bond issue “represents an important milestone for the expansion of the property development and rental operations. The funds raised will be utilised to enhance financial structuring and drive the growth strategy.”