TUM Finance plc

Issuer Profile

TUM Finance Plc is the parent company of TUM Operations Ltd.  TUM Invest was formed in 2015 following a division from the Tumas Group of Companies.  he Group’s main objective is to acquire, develop and manage a number of investment properties for commercial purposes and hold them for rental income. The Group, through the Guarantor owns a property that comprises a showroom, an underground floor and overlying offices situated at Mdina Road,Qormi. The property, known as Zentrum Business Centre consists of an area of 6200 square meters and is currently rented out to two tenants. Motors Inc. Limited rents the basement level, the ground floor level which is used as a showroom, and part of the first floor level which it uses as offices.

Malta Public Transport rents office space at ground floor and first level floor. This property is being further developed and will include another building comprising five basement levels, a showroom at ground level, and two levels of office space once completed. The said property will be held as a security for the proposed bond issue. Center Parc Holdings Limited owns the Center Parc Property situated in Qormi, limits of Marsa, in the district known as ‘Ta’ Stabal’, forming part of the land known as ‘Ta’ L-Erbgha Qaddisin’ having an area of approximately 9560 square meters. The property houses the Center Parc Retail Hub, a major retail destination in Qormi.

Issuer Need

The Group had initially taken bank facilities to finance the construction of its investment property. The Issuer needed to restructure its financing in order to ensure that servicing and capital repayment is in sync with the projected cash inflows of the operation.

Solution

Calamatta Cuschieri was approached by TUM Finance Plc to explore possible funding options to achieve its goals . A €20,000,000  secured bond issue was structured and fully subscribed. This helped the Group  refinance its existing debt facilities and  outstanding development costs. A portion of the bond proceeds was also utilised  to finance  general corporate funding requirements.