Corinthia Group developing €850 million worth of projects

The Corinthia Group is currently completing existing projects and developing new sites in overseas territories with an approximate total value of €850 million, group chairman and CEO Alfred Pisani said.

He was speaking at the announcement of a €20 million 10-year bond issue by Corintha Finance plc bearing an interest rate of 6.25 percent per annum, with an over-allotment option of an additional €5 million.

The bonds are redeemable in 2019 but may be redeemed earlier, as from 2016 at the issuer's discretion and are guaranteed by Corinthia Palace Hotel Company Limited (CPHCL).

Net proceeds will be principally used to redeem the outstanding amount of the 6.7 percent bonds 2009 and the remaining balance will be advanced to CPHCL for use in its general corporate funding purposes.

The funds will enable the group to further develop business opportunities arising from its continued expansion.

Application forms and copies of the prospectus are available from tomorrow in all branches of leading banks and authorised financial intermediaries. Subscriptions open on September 15 and the offer closes on September 18 or earlier if over-subscribed.

Existing Corinthia Finance plc 6.7 percent 2009 bond holders will be given preference over other investors.

As a gesture of appreciation towards those investors opting to roll-over their existing bonds, Corinthia Finance plc is compensating the difference between the interest receivable on the maturing 6.7 percent 2009 Bond and that receivable on the new 6.25 percent 2019 Bond for the period September 23 and October 30.

"The Corinthia Group is extremely indebted to the public who year afte year has supported our strategic direction and growth by partaking in the our successes, both locally and overseas.

"Likewise, we are indebted to our international strategic partners for their contribution to the group over a long period of time," Mr Pisani said.

He said Corinthia was a successful home-grown group of companies flying the Maltese flag whenever it ventured into new overseas territories in search of further growth across its areas of business

The group is currently developing three projects in Libya (Benghazi, Tripoli and Janzour), on in London and another in St Petersburg.