AGB Finance p.l.c. announces second tranche of 5.70% Secured Bonds maturing in 2036

AGB Finance p.l.c. has announced the issuance of the second tranche under its €25 million secured bond programme. The new bonds carry a fixed interest rate of 5.70% per annum and are redeemable in 2036. The bonds have a nominal value of €100 per bond and are being issued at par. 

This follows the successful issuance of the first series of bonds in 2025, which was fully subscribed following its launch. 

Find out more details on the prospectus and final terms below. 

Business overview 

AGB Finance p.l.c. forms part of the AGB Group, which, through the Guarantor, is principally involved in the acquisition, development, and rental of immovable property across Malta. The Group operates across the accommodation and tourism, commercial, and residential markets. 

The Group has established a growing presence within Malta’s real estate and tourism sectors through a portfolio of operational hospitality assets, development projects, commercial premises, and residential properties located in prime areas across the island. 

The Bond Issue forms part of the Group’s broader financing strategy to support ongoing development projects, strengthen its capital structure, and drive long-term growth through income-generating assets. 

Overview of holdings 

The Group’s portfolio consists of a mix of operational hospitality assets, income-generating commercial units, and residential and mixed-use developments across Malta, primarily structured to generate long-term rental income.

Hospitality assets 

The Group owns the G Hotel in St Julian’s, a 25-room, fully operational 3-star hotel leased to third-party operators under a long-term agreement generating fixed rental income. 

Adjacent to the G Hotel, the Group is also developing Corks Hotel, a 34-room project expected to be operated as a hotel upon completion. 

In Gżira, the Group is developing the Gżira Hotel, a 34-room, 3-star hotel currently in advanced construction, with finishing works underway. The project has the potential to expand to 49 rooms, subject to planning approval. Both the Gżira and Corks Hotel projects are intended for long-term leasing to hospitality operators. 

Commercial assets 

The Group owns two fully leased commercial outlets in Gżira, comprising a restaurant and a retail outlet, both generating recurring rental income under long-term lease agreements. 

Residential and mixed-use developments 

The Group is also involved in residential-led developments, including the Sliema Development Site, comprising residential apartments and a commercial unit, currently subject to planning approval and acquisition conditions. 

In Msida, the Group holds a partial interest in a completed residential block comprising apartments and a garage. Most units have been pre-sold under preliminary agreements, supporting near-term deleveraging through unit sales. 

Use of proceeds 

According to the Prospectus and the Final Terms, the net proceeds from the Bond Issue are to be primarily used to finance two property developments in Gżira and Sliema, with the remainder allocated to general corporate funding. 

The Bond Issue is therefore intended to support the continued expansion of the Group’s property and hospitality portfolio while strengthening its long-term funding structure. 

Bond highlights 

Term	Detail
Issuer	AGB Finance p.l.c.
Amount	€8,700,000
Coupon	5.70%
Maturity	2036
Status	Secured
Denomination	€100 per bond
Issue price	At par
Listing	Malta Stock Exchange

The minimum subscription amount is €5,000 and in multiples of €100 thereafter. 

Security package 

The Bonds are secured by first-ranking special hypothecs granted over selected hospitality assets forming part of the Group’s portfolio, principally comprising the Corks Hotel and the Sliema Development Site. 

A security trustee holds this security on behalf of all bondholders, ensuring investors are protected collectively rather than individually. The Bonds also benefit from a guarantee provided by the AGB Group, meaning repayment is supported not only by the issuing company, but by the broader group structure. 

The security package is intended to provide bondholders with additional protection through collateral granted over key assets within the Group’s portfolio. 

How to apply 

If you are considering participating in the Bond Issue, we recommend funding your account via bank transfer using your dedicated IBAN for the quickest and most efficient processing experience. Your IBAN details can be accessed through the Moneybase platform or found on your portfolio and statement reports. Alternatively, you may top up your account instantly by card through the Moneybase app. 

There are no application fees associated with subscribing to this Bond Issue. 

Customers may apply through the following channels: 

Online 

Clients can now submit their bond application directly through the Moneybase platform, available on iOS, Android, and web. 

To apply, search for the bond within the platform and complete your application in a few steps. 

5.70% AGB Finance plc 2036 

The minimum subscription amount is €5,000 and in multiples of €100 thereafter. 

Advisory 

Clients seeking investment advice or personalised assistance may contact their financial advisor or visit any of our branches located in Birkirkara, Mosta, Sliema and Fgura. 

Our advisory teams will be available throughout the application period to guide clients through the subscription process and answer any queries they may have. 

Our ISO-certified Customer Care team is available 7 days a week. Clients can get in touch via in-app live chat or by calling on +356 25 688 688. 

Calamatta Cuschieri Investment Services Limited is a member of the Maltese Investor Compensation Scheme. Instruments entrusted with us are covered under the Scheme in line with the Investor Compensation Scheme Regulations (S.L. 370.09). 

The information contained in this article is provided strictly for information purposes and does not constitute, nor should it be interpreted as, an offer, invitation, recommendation or solicitation to buy, sell or subscribe to any financial instrument or investment product. The information presented may be amended without prior notice and does not constitute investment advice, investment research or a guarantee of future returns or performance. 

Prospective investors are encouraged to read the applicable terms and conditions, Prospectus and offering documentation in full before making any investment decision. Investors should be aware that investments in financial instruments involve risks, including the possible loss of part or all of the capital invested, particularly in the event of default, insolvency and/or bankruptcy of the issuer. 

The financial instruments referred to herein are intended for retail clients; however, they may not be suitable or appropriate for all investors. Investors should make their own independent assessment and seek independent professional advice regarding the suitability and appropriateness of any investment, taking into account their individual investment objectives, financial situation and risk tolerance. 

The value of investments and any income derived therefrom may fluctuate and can go down as well as up. Past performance is not a reliable indicator or guarantee of future performance. Where investments are denominated in a currency other than the investor’s base or reporting currency, changes in foreign exchange rates may adversely affect the value and/or returns of the investment. 

Calamatta Cuschieri Investment Services Ltd, company registration number C13729, is licensed by the Malta Financial Services Authority to conduct investment services business under the Investments Services Act, Cap 370