Midi launches €30m bond

Midi plc, the developer of the €450 million Tigné Point and Manoel Island project, has launched a €30 million bond issue in euro and sterling.

In case of oversubscription, the issue may be increased to €40 million.

The bonds carry a coupon of seven per cent per annum, and mature on December 15, 2018 or as early as December 15, 2016 at the issuer's discretion.

A 40 per cent pre-placement subscription stage will open on January 12. Applications will be for a minimum of €10,000 (nominal) or £8,700 (nominal). The public offer will open the following day and close on January 20 or earlier. Applications for the public are for a minimum of €2,500 (nominal) or £2,000 (nominal).

This newly raised capital is earmarked to finance the completion of the Tigné Point development; €5.37 million will partly repay a privately-placed €9.32 million secured bond due for redemption by next December. The company is in the final stages of negotiating a roll-over for the remaining balance of €3.95 million at a variable interest rate. Proceeds from any over-allotment will be channelled to the development of the project or to reduce any associated borrowings.

Tigné Point in Sliema is expected to be completed in 2012 and Manoel Island in 2014. In 1998, an environment impact assessment stated that the project could generate 4,200 jobs.