22 MAY 2002

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Investors’ Corner
Mizzi Organisation Finance launches Lm5 million 6.7% Bonds 2009 – 2012

Mizzi Organisation Finance plc this week launched a public bond offering of Lm5 million at 6.7% interest, payable in arrears every six months. Each bond has a nominal value of Lm100. These bonds will be on sale from tomorrow and the offer will close on 31 May 2002 or earlier at the Company’s option. The Bonds are due for redemption on 31 May 2012 but the Company reserves the right to redeem all or part of the issue on the 7th, 8th or 9th anniversary. This was announced by, Dr John C. Grech, Chairman of Mizzi Organisation Finance plc, during a press launch, held to-day at the Waterfront Hotel, The Strand, Sliema.

In his address Dr Grech said "Mizzi Organisation needs no introduction, as it is one of the longest established business organisations on the Island. The Organisation owes its origins to Spiru Mizzi, its founder, who started the business in 1919. Although more than 80 years have gone by, the Organisation is still very prominent on the local business scene." The Mizzi Organisation is a business "built on household names". In fact, this is the slogan used in connection with the bond issue. Dr Grech continued by saying "that practically every Maltese adult has one day or another been a customer of the Organisation and besides being one of the largest business entities in Malta, it is by far the most diversified."

The Organisation is market leader in various sectors, namely, automotive, tourism, leisure, beverage, retail, contracting and real estate with more than 700 employees and turnover exceeding Lm43 million in 2001. The Organisation’s success results from its strategy of having the right mix of entrepreneurship through the "hands on" involvement of the members of the Mizzi family assisted by professional management both at company level and head office.

Dr Grech emphasised that "the Organisation’s philosophy is to maintain its position of market leader in the business sectors that it is involved in. Although competition is on the increase, we intend to continue improving our position in the market." Dr Grech also mentioned that "the Organisation is well placed and has the right tools to reach its targets. The Organisation represents some of the most prestigious brands and boasts of having prime properties from where it conducts its business. The Organisation is proud to have loyal, dedicated and efficient employees at all levels and is confident about its future as it has prepared itself to face the challenges of fierce competition".

The indications on the market for this bond issue are very positive. The pre-placement of this Bond has been very successful and if this is any indication, the response from the public should be equally strong. The Bond applications lists will open at 8.00 am tomorrow close as soon thereafter as may be determined by the Company but not later than 31 May 2002. The Organisation has already filed an application with the Malta Stock Exchange to have these bonds admitted on the official list.

Bank of Valletta p.l.c. has fully underwritten the bond issue and the Bank is also acting as Manager and Registrar. The sponsoring stockbroker is Vincent J. Rizzo of Rizzo Farrugia & Co. Stockbrokers Ltd. The auditors and reporting accountants are PricewaterhouseCoopers and Camilleri Preziosi are the legal counsel. The Bonds will be sold through all licensed stockbrokers and financial intermediaries, from whom application forms and copies of the offering memorandum can be obtained.

 



Copyright © Network Publications Malta.
Editor: Saviour Balzan
The Business Times, Network House, Vjal ir-Rihan San Gwann SGN 07, Malta
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