Public bond issue by Tumas Group

Tumas Group, through its wholly owned subsidiary company Dolmen Properties plc, yesterday announced a public bond offering of Lm3 million, with an over-allotment option of Lm1.7 million.

The bond issue is intended for the re-development of the Dolmen resort.

The bonds are being issued at a rate of six per cent interest per annum, said Ray Sladden, Group Financial Director and director of Dolmen Properties plc.

Each one, which has a nominal value of Lm100, with a minimum subscription of Lm500, is being issued at par and will be redeemed between 2010 and 2013.

The issue is underwritten by HSBC Bank Malta plc, who are also acting as trustees, managers and registrars.

The bond is the first of its type, being fully secured by a first special hypothec on the property enjoying a redemption fund, which will accumulate yearly to eventually pay off the bond.

In addition to the profitable history of the Dolmen, the security being provided is of top quality, he said.

Tumas Group chairman George Fenech said that since its origins in 1986, the New Dolmen Hotel has established itself as a landmark on the Qawra coastline.

A centre of leisure activities, it has 387 rooms, 47 luxury five-star holiday exchange apartments, entertainment facilities and the successful Oracle Casino.

The multi-faceted complex, which also houses the Oracle Conference Centre, has created working opportunities for hundreds of people, both employees and suppliers.

It employs around 260 full-time workers in the various sectors of the resort and has also managed to build a track record of consistent, positive performances for its stakeholders.

Tumas Group was now in a position to come to the capital market and offer the public the opportunity to participate in the success of the Dolmen.

"Following the success of previous Tumas Group bond issues, we felt that the Dolmen development presents itself as yet another investment opportunity for the public," Mr Fenech said.

Mr Sladden said the response for the pre-placement among institutional investors was "very positive" and he also expected a healthy response from the public to invest in "one of the pillars of Malta's tourism industry".

The sponsoring stockbrokers are Azzopardi Investment Management Ltd and HSBC Stockbrokers (Malta) Ltd. An application has been made for the Dolmen Properties plc Bonds to be listed on the Malta Stock Exchange.

Application forms for the Dolmen Properties plc. bonds are available from all branches of all commercial banks, all licensed stockbrokers and financial intermediaries, as well as from the lobby of the head office of Tumas Group at Portomaso Business Tower, St Julian's.