5.3% United Finance plc 2023


United Finance plc - Prospectus dated 06 October 2014

The Company

United Finance plc was set up in June 2000 to act as a finance company for United Group Ltd, the parent company of the United Group. The United Group, which is fully owned by the Gatt Baldacchino Family was established some 85 years ago as the United Motor Company, a transportation company which soon emerged as a major operator in the field of bus service and chauffeur driven vehicle services.

Today the United Group operates across 3 main sectors:

1. Automotive Service
This sector comprises vehicle importation and distribution operated by United Automobile Ltd, car rental and leasing operated by United Garage Ltd and towing and recovery services provided by United Motor Company Ltd. United Automobile Ltd which was incorporated in 1982 is the sole importer and distributor of both the Opel and SAAB brands in Malta. It operates a fully equipped service centre including the selling of car parts and accessories. United Motor Company Ltd started operating the CAA towing and road assistance services following its acquisition in 2006. United Garage Ltd is a leader in the car hire rental, leasing and fleet management industry. It currently owns and operates one of the largest fleet of saloon and commercial vehicles. It is still the sole franchisee of Hertz Rent-a-Car for the Maltese Islands and the oldest Hertz franchisee in Europe.

2. Fashion Retail
In 2005 the Group entered the retail industry with the introduction of a new retail division comprising two companies: United Retail Ltd (which operates franchised fashion stores Oasis and Principles) and United Department Store Ltd (set up to operate the Debenhams franchise in Malta). The Group’s aim is to become a leading player in the retail industry in Malta.

3. Property Development
Also in 2005, the Group invested in a major property development project through a 20% shareholding in Pender Ville Ltd and Pendergardens Ltd. Pendergardens is a prestigious self-contained development covering an area of 26,500 sqm in St. Julians, Malta, providing both residential and commercial properties. Once completed the development will offer all the amenities of a metropolitan centre in a car-free environment.

Use of Proceeds:

The net proceeds from the Bond issue, estimated at €8.1 million after issuance costs, were principally used by the Issuer to part finance the redemption of the outstanding €11.6 million 6.75% Bonds (Maturing Bonds). The redemption of the remaining balance of Maturing Bonds, equivalent to €3.5 million, was financed from the Issuer’s general cash flow.




The Bonds shall constitute the general, direct, unconditional and unsecured obligations of the Issuer, and shall rank pari passu, without any priority or preference among themselves and with other unsecured debt of the Issuer. The Bonds would rank after any future debts which may be secured by a cause of preference such as a privilege and/or a hypothec.



Amount Issued:

€8.5 million

ISIN Code:


Issue Price:

100% (par)

Interest Payment:

Annually on 6 November

XD Date:

22 October


The bonds will mature at 100% (par) on 6 November 2023.


Official List of the Malta Stock Exchange

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