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Challenge Aviation plc – New Secured Bond

Jonathan Falzon

April 22, 2026

Market News
22 April, 2026
6 min read
Market News
22 April, 2026
6 min read

Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.

Challenge Aviation plc recently published a Formal Notice following regulatory approval of a Base Prospectus relating to the admissibility to listing on the Official List of the Malta Stock Exchange of up to €30 million secured bonds. The issuer also published a presentation which indicated that Tranche 1 will consist of up to €30 million 5.75% secured bonds maturing in 2032.

Challenge Group is a global air cargo logistics specialist with a holding company based in Malta and cargo handling and logistics facilities in Liège, Belgium.

Challenge Aviation plc is the finance arm of Challenge Aviation Holdings Limited (the Guarantor) which is the holding company of several subsidiaries that own aircrafts and lease such aircrafts to other entities, primarily sister companies within the broader Challenge Group. As at the prospectus date, the Guarantor owned 14 Boeing-manufactured freighters aircraft valued at USD372.8 million. It also held a portfolio of 8 spare engines amounting to USD17.6 million.

The bond proceeds are earmarked for the refinancing of the USD41.5 million acquisition of the Boeing 777-300ERsf. Meanwhile, the bond is secured over a first-ranking Austrian law pledge over a Boeing B747-400F valued at USD39.8 million. The security also includes an insurance policy covering the secured aircraft with a replacement value of USD50 million. The security provider will also replace and/or add assets available to the trustee should the value of the secured aircraft fall below the principal of bonds issued plus one year of interest.

The bond will be offered through an Intermediaries’ Offer with the possibility of Placement Agreements. Interested applicants are kindly asked to contact us.

For any clarifications, please send an email to info@rizzofarrugia.com or contact us on +356 2258 3000.

This communication is for information purposes only and does NOT constitute personal investment advice or recommendation.  The recipient’s specific personal circumstances and investment objectives have NOT been considered and therefore, the investments mentioned may not be suitable for all its recipients.  Recipients should consult their investment advisor for personal investment advice on the investments mentioned in this e-mail. The value of the investments and the income therefrom may go down as well as up and investors may lose some or all of the money invested.

Investors wishing to acquire the Bonds should read the Prospectus before making any investment decision in order to fully understand the potential risks and rewards associated with an investment in the Bonds. A copy of the Prospectus is available on Rizzo, Farrugia & Co. (Stockbrokers) Limited’s website. Prospective investors are urged to consult their financial advisers as to the suitability or otherwise of acquiring such Bonds. The value of the investment and the income therefrom may go down as well as up and investors may lose some or all of the money invested.

This advertisement has been issued by Rizzo, Farrugia & Co. (Stockbrokers) Limited, a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta, and having its registered address at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

Challenge Aviation plc recently published a Formal Notice following regulatory approval of a Base Prospectus relating to the admissibility to listing on the Official List of the Malta Stock Exchange of up to €30 million secured bonds. The issuer also published a presentation which indicated that Tranche 1 will consist of up to €30 million 5.75% secured bonds maturing in 2032.

Challenge Group is a global air cargo logistics specialist with a holding company based in Malta and cargo handling and logistics facilities in Liège, Belgium.

Challenge Aviation plc is the finance arm of Challenge Aviation Holdings Limited (the Guarantor) which is the holding company of several subsidiaries that own aircrafts and lease such aircrafts to other entities, primarily sister companies within the broader Challenge Group. As at the prospectus date, the Guarantor owned 14 Boeing-manufactured freighters aircraft valued at USD372.8 million. It also held a portfolio of 8 spare engines amounting to USD17.6 million.

The bond proceeds are earmarked for the refinancing of the USD41.5 million acquisition of the Boeing 777-300ERsf. Meanwhile, the bond is secured over a first-ranking Austrian law pledge over a Boeing B747-400F valued at USD39.8 million. The security also includes an insurance policy covering the secured aircraft with a replacement value of USD50 million. The security provider will also replace and/or add assets available to the trustee should the value of the secured aircraft fall below the principal of bonds issued plus one year of interest.

The bond will be offered through an Intermediaries’ Offer with the possibility of Placement Agreements. Interested applicants are kindly asked to contact us.

For any clarifications, please send an email to info@rizzofarrugia.com or contact us on +356 2258 3000.

This communication is for information purposes only and does NOT constitute personal investment advice or recommendation.  The recipient’s specific personal circumstances and investment objectives have NOT been considered and therefore, the investments mentioned may not be suitable for all its recipients.  Recipients should consult their investment advisor for personal investment advice on the investments mentioned in this e-mail. The value of the investments and the income therefrom may go down as well as up and investors may lose some or all of the money invested.

Investors wishing to acquire the Bonds should read the Prospectus before making any investment decision in order to fully understand the potential risks and rewards associated with an investment in the Bonds. A copy of the Prospectus is available on Rizzo, Farrugia & Co. (Stockbrokers) Limited’s website. Prospective investors are urged to consult their financial advisers as to the suitability or otherwise of acquiring such Bonds. The value of the investment and the income therefrom may go down as well as up and investors may lose some or all of the money invested.

This advertisement has been issued by Rizzo, Farrugia & Co. (Stockbrokers) Limited, a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta, and having its registered address at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.