Corinthia Finance plc yesterday officially announced the issue of a €20 million 10-year bond bearing an interest rate of 6.25 per cent per annum, with an over-allotment option of an additional €5 million. The bonds are guaranteed by Corinthia Palace Hotel Company Limited.

The net proceeds from the bonds will be primarily used to redeem the outstanding amount of the 6.7 per cent bonds 2009 with the rest advanced to CPHCL for use in its general corporate funding purposes. The funds will be used to further develop business opportunities arising from its continued expansion.

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

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

Corinthia Finance plc is compensating the difference between the interest receivable on the maturing 6.7 per cent 2009 bond and that receivable on the new 6.25 per cent 2019 bond for the period between September 23 and October 30.

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 group is currently developing three projects in Libya (Benghazi, Tripoli and Janzour) another development in London and in St Petersburg Russia, where after the completion and inauguration of the extension to the Corinthia St Petersburg Hotel in May, the project is in its final stages to complete the retail and commercial areas adjacent to the hotel.

Corinthia Finance plc was incorporated in 1999 as a financing arm for Corinthia Palace Hotel Company Limited to enable the latter company to undertake the ownership, development and operation of real estate developments.

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

Charts Investments Management Services Ltd are sponsoring stockbrokers.

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