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Published on 2 September 2026
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5 min read
Central Business Centres plc (“CBC” or the “Issuer”) has announced the launch of an issue of up to €16.75 million in 5.9 per cent unsecured bonds maturing in 2036, as part of the company’s €30 million Bond Issuance Programme.
The Tranche 2 Bonds will be issued at a nominal value of €100 per bond and will carry a fixed interest rate of 5.9 per cent per annum, payable annually in arrears on 7th October, with the first interest payment falling due on 7th October 2027. The bonds will mature on 7th October 2036, subject to the issuer’s early redemption option as outlined in the applicable final terms.
The bond Issue represents the next phase in CBC’s long-term strategy of investing in, developing and enhancing commercial property across Malta.
CBC is principally engaged in the ownership, development and leasing of commercial property in Malta. Its portfolio comprises business centres and commercial properties across Haż-Żebbuġ, Gudja, St Julian’s, Valletta, Mrieħel, and Qormi, serving office, retail and mixed-use requirements.
The bonds are unsecured obligations of the issuer. As at 30th June 2026, CBC’s investment property portfolio amounted to approximately €88 million, as reported in the issuer’s unaudited interim financial statements for the six-month period ended 30th June 2026. The vast majority of the company’s properties are leased, principally through medium to long-term rental agreements.
Assuming the balance of the bonds is subscribed for in cash, the issue is expected to generate maximum net cash proceeds of approximately €13.45 million after estimated expenses. In addition, €3 million in nominal value of Bonds will be allocated as non-cash consideration towards the acquisition of the Cortis 2 Property.
The use of proceeds is disclosed in the applicable final terms and include the redemption of the 2017 Existing Bonds (maturing in 2027), consideration and costs associated with the acquisition of the Cortis 2 Property, settlement of the outstanding amount relating to the acquisition of CBC Mrieħel, further capital expenditure at CBC Valletta – The Savoy and CBC Mrieħel, and general corporate funding.
Following Tranche 1 (€13.25 million, issued as 5.70 per cent Bonds 2030-2035), Tranche 2 will bring the aggregate amount issued under the €30 million Programme to €30 million.
The bond Issue is a continuation of CBC’s long-term development strategy, which has consistently focused on building, maintaining and improving a tangible, landmark commercial property portfolio while pursuing growth in a measured and responsible manner.
As a family business, CBC maintains a long-term perspective on investment and growth. While remaining focused on current performance, the company’s strategy is centred on strengthening its property portfolio, maintaining its commitments to bondholders, and continuing to build a solid foundation for future development.
CBC reported revenue of €1.6 million for the period January to June 2026, an increase of 12 per cent over the previous year as reported in the company’s unaudited interim financial statements published on 28th August 2026. For the financial year ended 31st December 2025, CBC reported revenue of €2.58 million, an increase of 8.9 per cent over the previous year, while EBITDA increased by 10.4 per cent to €2.26 million. The company’s Financial Analysis Summary forecasts further revenue growth during 2026 and 2027, supported by the contribution from its Qormi property and increasing income from its wider portfolio as ongoing development and refurbishment projects progress.
The Offer Period will run from 4th September 2026 until 12:00 on 29th September 2026, unless closed earlier by the issuer in accordance with the applicable final terms.
Holders of the 2017 Existing Bonds (maturing in July 2027) may apply for Tranche 2 Bonds with a minimum subscription of €1,000 and in multiples of €100 thereafter. For all other applicants, the minimum application is €2,000 and in multiples of €100 thereafter.
Applications may be submitted through authorised financial intermediaries. Calamatta Cuschieri Investment Services Limited is acting as Sponsor, Manager and Registrar.
Application has been made for the bonds to be admitted to the Official List of the Malta Stock Exchange, with trading expected to commence on 8th October 2026.
The Base Prospectus and applicable Final Terms are available here.
Featured image: A render of The Savoy Valletta project
IMPORTANT NOTICE
This is an advertisement issued by Central Business Centres p.l.c., C 65702. Prospective investors should read the Base Prospectus dated 23 October 2025 and the applicable Final Terms in full before making any investment decision in order to fully understand the potential risks and rewards associated with an investment in the Bonds. Investment in the Bonds involves risks, including the potential loss of capital. The Bonds are unsecured obligations of the Issuer.
The Base Prospectus has been approved by the Malta Financial Services Authority. Such approval should not be considered an endorsement of the Issuer or the Bonds. The value of investments may go down as well as up.
This advertisement does not constitute investment advice or a recommendation. Prospective investors should seek financial, legal and tax advice if in any doubt as to the suitability of the investment. The Base Prospectus, applicable Final Terms and relevant risk factors are available here.
This article was written by a team member at MaltaInvest.mt.