Mediterranean Investments Holding plc (MIH), a joint venture between the Corinthia Group and Kuwaiti interests, has launched a bond issue, denominated in Maltese liri or euros, to part finance its principal development of Palm City Residences in Janzour, Libya.

The Lm6,439,500/€15 million bond issue, which bears a coupon of 7.5 per cent per annum, is repayable in 2014 or earlier at the issuer's option.

The Palm City Residences project is a 408-unit development located close to the Libyan capital Tripoli, occupying a 133,824 square-metre area on a kilometre-long shorefront. MIH said the property will provide residents with high standards of quality accommodation through a selection of designer villas, bungalows, terraced houses, maisonettes and apartments built around a central piazza with a complete range of facilities including a supermarket, retail boutique outlets, cafes, medical clinic, a bank and a travel agency. The project is expected to be completed towards the end of 2008.

Accommodation units will be mainly rented out for medium-term leases to blue chip companies operating in Libya in order to meet their expatriate personnel's housing requirements.

MIH chairman Alfred Pisani expressed confidence that Maltese investors will participate directly through the acquisition of bonds on offer "in the development of this fast-growing country".

The bond Issue is being managed and underwritten by Bank of Valletta and Charts Investment Management Service Ltd are acting as the sponsoring stockbrokers. The bonds are expected to be admitted to the Alternative Companies List of the Malta Stock Exchange, MIH said.

Copies of the prospectus and application forms will be available at bank branches and authorised intermediaries from tomorrow.