International Hotels Investments plc (IHI) is issuing a e30 million, 10-year bond bearing an interest rate of 6.25 per cent per annum, with an over-allotment option of an additional e5 million. The bonds may be redeemed earlier at the issuer’s discretion between 2015 and 2019.

Application forms and copies of the Prospectus are available from all branches of leading banks and authorised financial intermediaries. While subscriptions of not less than e1,000 will be eligible for subscription on 30 June, applications for e2,500 or more can be submitted immediately to participate in the pre-placement that will close on 26 June. Investors who already hold equities or bonds of the Corinthia Group will be entitled to participate before 26 June, with applications of not less than e1,000.

This is the fourth bond issue by IHI to finance new acquisitions and developments in several overseas territories, ranging from Libya to mainland Europe and beyond.

“IHI is a developer, owner and operator of upmarket hotels across continents, employing in excess of 2,000 people. Backed by this unique combination of experiences, a successful track record and solid strategic partners, today IHI stands in a very comfortable financial position with assets worth over e1 billion and with more ambitious growth plans in store. “Based on our previous three very successful public offerings, we are confident that the public will react positively to our fourth bond offer, which will help us finance our future expansion plans given that our acquisitions and developments that are currently underway in London and Benghazi are all fully funded,” said Joseph Fenech, managing director of IHI.

Bank of Valletta and HSBC are joint managers for the bond. Bank of Valletta is Bond Registrar while Charts is sponsoring stockbrokers.

The Corinthia Hotel London

The e300 million flagship Corinthia Hotel London project is currently underway and very much on track for its target opening on 10 October 2010.

The former Metropole Hotel on Northumberland Avenue and the adjacent 10 Whitehall Place were acquired from the Crown Estate a year ago by a consortium owned by IHI and its two principal shareholders, the Libyan Foreign Investment Company and Nakheel Hotels of Dubai.

Together with their consortium partners, IHI is converting the prestigious Metropole Hotel building into Corinthia’s flagship hotel with 300 luxury rooms in the heart of London, including multi-level penthouse suites and terraces, a large central courtyard foyer, two clusters of restaurants, a destination bar, a restored grand ballroom and meeting facilities.

The property is situated a stone’s throw away from Trafalgar Square, the River Thames and the London Eye. 10 Whitehall Place is to be redeveloped to incorporate 12 luxury, hotel-serviced apartments ranging between 250 and over 1,000 square metres.

The demolition of some structures within the buildings and asbestos removal is practically completed. The contractor for the project has been appointed and is currently mobilising for work to begin this month. All required consultants have been appointed and an agreement has been concluded with the operator of a specialty restaurant. Agreement has also been reached with award-winning spa operators ESPA for the development and eventual operation of what is expected to be the largest and most prestigious spa in London.

The Corinthia Hotel Benghazi

The 250-room Corinthia Hotel Benghazi will stand on the site of the former Al Jezira Palace Hotel on Ali Wouraieth Street, on the water’s edge. The original hotel building will be retained and a back plot and an interconnecting road have been acquired to accommodate the extension of the property.

Work is due to commence soon to develop this 7,000 square metre site into a luxury 250-room hotel, including 100 suites, 30 residential apartments, commercial offices and retail outlets.

The hotel will offer a wide range of business and leisure facilities including restaurants and coffee shops, conference suites, banqueting halls, a business centre, an executive lounge, a spa and gym and an underground car park.

Benghazi is Libya’s second city after Tripoli. The Corinthia Hotel Benghazi will be positioned as the leading hotel in the city.