MIH launches €30m 7.15% bond issue

Subscriptions for Mediterranean Investments Holding plc's €30 million seven-year bond bearing an interest rate of 7.15 per cent per annum will open to the public on Monday. The offer closes on Friday July 16 or earlier if over-subscribed. In the case of over-subscription, the bond issue will be increased by €10 million up to a total of €40 million.

MIH is a subsidiary of the Corinthia Group.

Last week, the Listing Authority concluded that the company's track record satisfied all the necessary criteria for the existing MIH bonds to be upgraded from the Alternative Companies List to the Official List of the Malta Stock Exchange. The official notice announcing the upgrade was issued by the Council of the Malta Stock Exchange on July 1, therefore admitting the €15,000,689 7.5% 2012-2014 Bond and the €20 million 7.5% 2015 Bond to the Official List.

The new €30 million Bonds are redeemable in 2017 but may be redeemed earlier, as from 2015 at the issuer's discretion.

The aggregate bonds are being issued in any one or any combination of three currencies: in euro with a nominal value of €100 per bond, in sterling with a nominal value of £100 per bond and in US dollar with a nominal value of $100 per bond.

The proceeds from the Bonds will be principally used for the furthering of the company's expansion strategy in the real estate market in Libya. The €300 million Medina Tower, a mixed use development in the heart of Tripoli will be a 40-storey building comprising a significant number of luxury apartments for sale together with large commercial and retail areas for letting, all backed up by substantial underground parking.

Bank of Valletta plc and HSBC Bank Malta are joint managers for the bond while Bank of Valletta is bond registrar. Rizzo Farrugia & Co. are sponsoring stockbrokers.