Challenge Aviation p.l.c. has announced the issuance of €30,000,000 5.75% secured Bonds maturing in 2032, with a nominal value of €100 per bond issued and redeemable at par.
Find out more details on the Base Prospectus & Final Terms below.
Business overview
Challenge Aviation p.l.c. operates as the dedicated financing vehicle of the Bond Group, established to raise capital and advance funding to group entities engaged in the acquisition, ownership, and leasing of aircraft. Through this structure, the Bond Group builds and manages a portfolio of wide‑body cargo aircraft which are leased on a medium‑ to long‑term basis to operating airlines within the wider Challenge Group.
The board of Challenge Aviation p.l.c. highlighted that the bond programme represents an important milestone for the expansion of aircraft leasing operations. The Bond Group currently owns 14 aircraft, and additional aircraft engines valued at around $400 million, with funds raised intended to further support the Group’s growth strategy in the air cargo sector.
The aircraft leasing platform supports the wider Group’s fully integrated air‑cargo operations, which span cargo airlines, ground handling, logistics, and commercial air freight services across multiple jurisdictions, including Europe, Israel, and Malta. Lease income generated under contractual arrangements contributes to the financial sustainability of the aircraft ownership structure and underpins the Group’s core aviation activities.
Use of proceeds
The net proceeds from the Bond programme are expected to amount to an aggregate of €30.0 million, before issuing costs. These proceeds will be used to refinance the acquisition of a Boeing B777‑300ER aircraft, which forms part of the Challenge Group’s aircraft fleet supporting its air cargo operations.
By refinancing this aircraft acquisition, the Group aims to align long‑term funding with long‑term assets, supporting financial stability and efficient capital management. This approach allows the Group to continue investing in its fleet while maintaining a balanced funding structure to support ongoing operations and future growth.
How to apply
There are no fees to apply, this includes both nominee and non-nominee (certificated) applications.
If you are interested in participating in the Bond Issue and need to fund your account with us, we strongly recommend that you send a bank transfer to the IBAN provided on your account for fast straight-through processing. This can be found easily on your portfolio and statement reports or via the Moneybase platform. Please contact customer care if you are unable to locate this. You can also fund your account by card through the Moneybase platform.
Online
Our award-winning platform, Moneybase is available as an app on both Android and IOS app stores and on the web.
Should you prefer to apply online, kindly look up the instrument below and specify the amount of bonds you would like to subscribe:
The minimum application amount is €5,000 and in multiples of €100 thereafter.
Advisory
Financial Advisory clients who wish to seek financial advice or who prefer to speak to their financial advisor can fund their account and visit one of our branches (Birkirkara, Mosta, Sliema and Fgura) or contact our customer support on +356 25 688 688 or on www.cc.com.mt.
If you need assistance, our ISO-certified customer care team is available to assist 7 days a week.
Calamatta Cuschieri Investment Services Limited is a member of the Maltese Investor Compensation Scheme. Instruments entrusted with us are covered under the Scheme in line with the Investor Compensation Scheme Regulations (S.L. 370.09).
This is a marketing communication. The value of the investment can go down as well as up and past performance is not necessarily indicative of future performance. Investing in the bonds of the Issuer may result in a loss of some or all the capital invested. Prospective investors wishing to subscribe to the bonds should make their own assessment as to the suitability of the investment after reading the Prospectus to fully understand the features of the investment and the potential risks and rewards associated with the bonds. Prospective investors are to consult their independent financial advisor as to the suitability or appropriateness of investing in the bonds.
