ClearFlowPlus plc - Details of New Bond Issue
On 21 July 2023, ClearFlowPlus plc published a Prospectus following regulatory approval for the admissibility to listing on the Green Bond List of the Malta Stock Exchange of €25 million 4.25% unsecured bonds maturing in 2033. The Issuer is a subsidiary of the Water Services Corporation (the Guarantor), which in turn, is responsible for potable water and wastewater services in the Maltese Islands. The Guarantor’s principal activities are to acquire, produce, distribute, and sell water for domestic, industrial and commercial use, to treat and dispose or re-use wastewater and also to further reduce the energy costs related to the production of water using renewable energy sources. ClearFlowPlus plc prioritizes sustainability and promotes eco-friendly activities. One of its main focuses is the provision of water through industrial reverse osmosis systems for the hospitality sector. In addition, the Issuer also provides private and public water dispensers to make clean, safe drinking water more accessible to the general public.
The salient details of the new bond issue are as follows:
Coupon:
4.25%
Amount Offered:
€25 million (nominal)
Issue Price:
100% (par)
Maturity:
25 August 2033
Interest Payment Date:
Annually on 25 August (first interest payment date is 25 August 2024)
Ranking of the Bonds:
The bonds will constitute the general, direct, unsecured, and unconditional, obligations of the Issuer and shall at all times rank pari passu, without any priority or preference among themselves and with all other unsecured and unsubordinated obligations of the Issuer. The bonds will be guaranteed in respect of both the interest and principal by the Guarantor.
Use of Proceeds:
The net proceeds from the bond issue will be used as follows:
- €6.0 million to finance new PV plants in various regions across Malta.
- €1.7 million to re-finance part of the costs incurred in connection with the development and commissioning of Hondoq ir-Rummien reverse osmosis plant in Gozo.
- €2.0 million to upgrade the airblowers and the aeration system within Ta’ Barkat wastewater treatment plant.
- €7.9 million to finance investments in projects aimed to further reduce non-revenue water and improve billing efficiencies, in particular the costs in connection with the purchase and commissioning of the upgrade to the Water Services Corporation’s Enterprise Resource Planning SAP system and the algorithmic software within such system.
- €7.4 million to upgrade the water distribution network and infrastructure.
Plan of Distribution:
The bonds will be made available for subscription to all categories of investors. The issuer will allocate the bonds on the basis of the following policy:
- Each employee of the Issuer and Guarantor can apply for a fixed amount of €5,000 in nominal value, which is being reserved for this purpose (estimated at €5.4 million based on the number of eligible preferred applicants).
- The remaining amount, including any amounts not subscribed for by preferred applicants are being made available for subscription by the general public.
Minimum Subscription Amount:
€5,000 (nominal) and in multiples of €100 thereafter (General Public Offer).
Listing:
Green Bond List of the Malta Stock Exchange
Offer Period:
Preferred Applicants’ Offer Period: 26 July to 31 July at noon.
General Public Offer Period: 1 August 2023 to 18 August 2023 at noon (or earlier in the case of over-subscription)
Expected Listing Date:
1 September 2023
Downloads:
Green Bond Verification Report
Disclaimer:
This webpage has been prepared based on the Prospectus dated 20 July 2023 issued by ClearFlowPlus plc and no representations or guarantees are made by Rizzo, Farrugia & Co. (Stockbrokers) Ltd with respect to the accuracy of the data. This webpage is for information purposes only. It is NOT intended to be and should NOT be construed as an offer or solicitation to acquire or dispose of any of the securities or issues mentioned herein. Rizzo, Farrugia & Co. (Stockbrokers) Ltd accepts NO responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this webpage.
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 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.