Challenge Aviation - €30m 5.75% Secured Bonds due 2032
Challenge Aviation p.l.c. (the “Issuer”) has been granted approval by the Malta Financial Services Authority (the “MFSA”) for the admissibility to listing on the Malta Stock Exchange (the “MSE”) of a €30 million secured bond, carrying a fixed coupon of 5.75% per annum and maturing on 26 May 2032 (the “Bond”). The Bond shall be guaranteed by Challenge Aviation Holding Limited (the “Guarantor”).
Issuer Profile
The Issuer is a special purpose finance vehicle established to fund the operations of the Guarantor and its subsidiaries (together, the “Bond Group”). The Bond Group forms part of the wider Challenge Group, a vertically integrated air-cargo and aviation services platform combining airlines, ground handling, logistics, maintenance and a dedicated aircraft-leasing capability under one unified structure. As at 2025, the Challenge Group employs over 1,030 people across Malta, Belgium and Israel, operating a fleet of wide-body freighters (B747, B767, B777).
The Bond Group’s primary function is to acquire, convert (where required), finance, and lease freighter aircraft. These assets generate stable, contractual lease income under medium- to long-term lease agreements. The Bond Group’s major assets comprise its Aircraft Portfolio of 14 owned aircraft and 8 spare engines, with an overall valuation of approximately USD 372.8m (plus USD 17.6m in engines and aviation equipment).
For further information on the Issuer and the Bond, a link to the prospectus may be found below:-
Use of Proceeds
The net proceeds from the Bond Programme is expected to amount to an aggregate of €30.0m before issue costs and will be utilized to refinance the acquisition of a Boeing B777-300ER aircraft.
Security
The bond is secured by a comprehensive collateral package, including: the Pledge on Aircraft, the Tripartite Agreement, the Aircraft Security Agreement and the Pledge on Insurance.
Application Process
An amount of €30 million has been made available for subscription by Authorised Financial Intermediaries, including Curmi & Partners Ltd. The minimum subscription amount is €5,000 in nominal value (and multiples of €100 thereafter).
The Offer Period will open at 8:30 hours on 29 April 2026 and close at 12:00 hours on 15 May 2026. The Issuer reserves the right to shorten or extend the Offer Period depending on the level of subscription in the Bond Issue.
Should you be interested in participating in the new bond issue or have any queries, kindly contact one of our team as per the contact details below.
Disclaimer
Curmi & Partners Ltd is acting as an Authorised Financial Intermediary for this bond. This communication should not be considered as investment advice or recommendation with respect to these financial instruments and the information provided herein is for informational purposes only. No tax, legal or any other ancillary regulatory advice is provided in this advertisement. The information contained in this advertisement is based on public information and reflects the Offering Documentation of the financial instruments, with the information being accurately reproduced and no facts have been omitted which would render the reproduced information inaccurate or misleading. However, Curmi & Partners Ltd has not independently verified the information it has obtained from sources that it believes to be reliable. Investors are urged to read the Offering Documentation when considering whether to invest in this financial instrument. The value of investments can fall as well as rise and past performance is no indication of future performance. Curmi & Partners Ltd is acting on a non-independent basis and may receive inducements from the Issuer of the securities. This advertisement was approved for issue by Curmi & Partners Ltd, which is licensed to conduct investment services business under the Investments Services Act (Cap 370 of the Laws of Malta) by the MFSA and is also a Member of the Malta Stock Exchange. Curmi & Partners Ltd’s registered address is at Finance House, Princess Elizabeth Street, Ta’ Xbiex, XBX 1102.