Allotment policy for Mizzi Organisation bond issue

Last week Mizzi Organisation Finance plc announced its allotment policy for its Lm5 million bond issue opened for subscription on May 23.

Following the overwhelming demand for the bonds, the issue was closed a few hours later. In fact, 1,861 applications for bonds for a total value in excess of Lm14.3 million were received.

The company is exercising the over-allotment option to issue an additional Lm5 million in bonds, increasing the issue to Lm10 million.

All applications received in the Employee Offering and during the Pre-Placement stage will be allotted in full. Applications received from the public after opening of subscriptions will be allotted according to the following policy: applications for bonds with a nominal value up to and including Lm5,000 will be met in full; applications for bonds with a nominal value in excess of Lm5,000 will be met as follows: the first Lm5,000 will be met in full; for the next Lm5,000, 10% will be accepted; for the next Lm90,000, 3.5%; and the balance, 2%.

Where applicable, allotments will be rounded down to the nearest Lm100.

This policy was adopted to ensure the widest possible distribution of the bonds.

Allotment letters and refunds of unallocated monies (where applicable) will now be sent by June 10 and interest on the bonds commenced on Friday.