ISINMT0002251206  
InstrumentSecured Bonds  
ListingProspect MTF
Issue date12/06/2019 
Amount€5,000,000
Redemption date05/06/2029 
Coupon5%

Issuer Profile

Smartcare Finance p.l.c. acts as the finance company of the Smartcare Group which was established with the aim to provide high-quality construction services to both the private and public sectors. Following a series of successes and as the business grew, three additional development companies were incorporated through which a number of development projects were acquired. 

In 2018, Smartcare Pinto Ltd was incorporated and the company entered into the healthcare for the elderly sector by purchasing the Dar Pinto, a state-of-the-art, elderly care home located in Qormi with a total of 148 beds spread over 4,500 square meters, stretching between two parallel streets. The home also includes a chapel, dining room, a kitchen and other amenities, all finished to the highest of standards. 

Issuer Need

With immigration on the increase and a life expectancy for both genders well into their senior years, it is no surprise that the local population is an ageing one. This coupled with the shifts in the current labour force means that a substantial number of elderly people are left with no relatives who can care for them and as a consequence, the demand for nursing homes and institutional care has reached an all-time high. The financing needed would allow the Group to further establish its reputation in the healthcare sector and achieve its goals via Dar Pinto.  

Solution

The Prospects MTF was deemed to offer the ideal financing opportunity for the projects Smartcare Finance p.l.c. was to undertake. The team included Calamatta Cuschieri as the Corporate Advisor, Placement Agent and Manager, and Nexia BT as Financial Advisors.   

The €5,000,000 fully-subscribed secured bond issue helped finance the acquisition of a further property which will be rented out to third parties, as well as repay financial facilities which had originally enabled the Group to purchase the care home and its equipment. Lastly, the remaining amount was used for the Group’s general corporate funding purposes.