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News | Wednesday, 16 September 2009

Corinthia bond issue oversubscribed

Charlot Zahra

A €20 million Corinthia Finance p.l.c. 6.25 per cent 2019 bond issue was over-subscribed yesterday, on the first day of issue.
Corinthia Finance has also exercised the over-allotment option of €5 million, to accommodate up to €25 million worth of applications.
The net proceeds from the bonds would be principally used to redeem the outstanding amount of the 6.7 per cent bonds that expired this year.
The remaining balance of the bonds would be advanced to Corinthia Palace Hotel Ltd for use in its general corporate funding purposes.
The funds would be employed to enable the Group to further develop business opportunities arising from its continued expansion.
Commenting on the successful bond issue, Corinthia Group Chairman and Chief Executive Officer (CEO) Alfred Pisani said: “This success gives us great satisfaction as it provides another indication of the strong reputation enjoyed by the Corinthia Group.”
He thanked the Maltese public for its continued confidence in the company.
Corinthia Finance plc (CF) was incorporated in 1999 as a financing arm for Corinthia Palace Hotel Company Limited (CPHCL) to enable the latter to undertake the ownership, development and operation of real estate developments.
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 Corinthia Group is now developing three projects in Libya – Benghazi, Tripoli and Janzour, another development in London and in the Russian city of St Petersburg, where after the completion and inauguration of the extension to the Corinthia St Petersburg Hotel, the project is in its final stages to complete the retail and commercial areas adjacent to the hotel.
The bonds are redeemable in 2019 but might be redeemed earlier (as from 2016 at the issuer’s discretion) and are guaranteed by Corinthia Palace Hotel Company Limited (CPHCL).

czahra@mediatoday.com.mt

 

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16 September 2009
ISSUE NO. 599

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