International Hotel Investments plc is to issue €25 million 10-year bonds bearing an interest rate of 6.25 per cent per annum. The bonds are redeemable in 2020 but may be redeemed earlier, as from 2017.

The proceeds from the bonds will be principally used to redeem the outstanding amount of the five per cent IHI convertible bond which matures on May 29 and to repay in full an existing loan facility, IHI managing director Joseph Fenech said last Friday.

Preference will be given to applicants holding the maturing bond who surrender their existing holding in favour of a holding in the new bond. Registered shareholders and bondholders of the Corinthia Group, including IHI, Corinthia Finance plc, and Mediterranean Investments Holding plc, will also be given preference.

Application forms and copies of the prospectus are available from authorised financial intermediaries. Subscriptions open on March 24 and the offer closes on March 30 or earlier if it is over-subscribed.

IHI was launched as a publicly-traded company in 2000 with the intention to acquire, develop and operate upscale hotels and ancillary real estate in Europe and beyond, principally in fast-evolving destinations.

IHI's investments to date have featured the new-construction of landmark developments, as well as the acquisition of existing hotels, where IHI has attempted to maximise the earnings potential of each acquired hotel by way of major refurbishment and expansion projects.

The bond is managed by Bank of Valletta plc which is also acting as Bond Registrar. Charts Investment Management Service Limited is the sponsoring stockbroker.