On 20 June 2022, Grand Harbour Marina plc (“GHM”) announced that it agreed to enter into two loan agreements with its sister company Camper & Nicholsons Marinas Limited (“CNML”) pursuant to which GHM will grant loans to CNML in the aggregate amount of €2.68 million and bearing a fixed interest rate of 5% per annum. The loans are repayable by 31 March 2027 and 30 September 2028 and the funds will be on-lent by CNML to Çeşme Marina Yatirim, Turizm ve Işletmeleri Anonim Şirketi (“IC Cesme”) which is 45% beneficially owned by GHM.
The loans to IC Cesme are intended to replace funds which GHM had lodged with its parent company Camper & Nicholsons Marina Investments Limited (“CNMIL”) at the time of the acquisition by GHM of the beneficial interest in IC Cesme. As a result, the new loans will not necessitate any additional outflow of funds for GHM but will only require a reclassification of the funds in the company’s Statement of Financial Position. On the other hand, the 5% annual interest receivable by GHM will improve the company’s financial return when compared to the 0.05% interest that GHM was earning on the same funds.