Corinthia Finance bond offer over-subscribed

Corinthia Finance plc's €20 million 6.25 per cent 2019 bond issue has been over-subscribed and closed yesterday, on the first day of offer. Corinthia Finance plc has also exercised the over-allotment option of €5 million, to accommodate up to €25 million worth of applications.

The net proceeds from the bonds will be principally used to redeem the outstanding amount of the 6.7 per cent bonds 2009 and the remaining balance of the bonds will be advanced to CPHCL for use in its general corporate funding purposes. The funds will be employed to enable the group to further develop business opportunities arising from its continued expansion.

"This success gives us great satisfaction as it provides another indication of the strong reputation enjoyed by the Corinthia Group. The chairman and board of directors of Corinthia Finance plc are grateful to the Maltese public for the continued trust showed in our company as evidenced by this very positive response. I take this opportunity to thank the investors, the banks, all financial intermediaries and advisers for their support in making this bond issue a success," said group chairman and chief executive officer Alfred Pisani.

Corinthia Finance plc was incorporated in 1999 as a financing arm for Corinthia Palace Hotel Company Ltd (CPHCL) to enable the latter to undertake the ownership, development and operation of real estate developments. Through its subsidiary companies, CPHCL is currently engaged in completing existing projects and developing new sites in various overseas territories with an approximate total value of €850 million worth of investments.

The bond offer was jointly managed by HSBC and Bank of Valletta which also acts as bond registrar.

Charts Investments Management Services Ltd is sponsoring stockbroker while GVTH Advocates serve as legal counsel to the bond issue.