Corinthia Finance’s e20 million 6.25% 2019 Bond issue was over-subscribed and closed on the first day of the offer this week.

Corinthia Finance also exercised the over-allotment option of e5 million, to accommodate up to e25 million worth of applications.

The bonds’ net proceeds are to be principally used to redeem the outstanding amount of the 6.7% Bonds 2009 and the remaining balance of the bonds will be advanced to CPHCL for use in its general corporate funding purposes. The funds will be employed to enable the group to further develop business opportunities arising from its continued expansion.

“This success gives us great satisfaction as it provides another indication of the strong reputation enjoyed by the Corinthia Group,” said group chairman and chief executive officer Alfred Pisani.

“The chairman and Board of Directors of Corinthia Finance are grateful to the Maltese public for its continued trust in our company as evidenced by this very positive response. I take this opportunity to thank the investors, the banks, all financial intermediaries and advisers for their support in making this bond issue a success.”

Corinthia Finance plc 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 e850 million worth of investments.

The bond offer was jointly managed by HSBC and Bank of Valletta, which also acts as Bond Registrar. Charts Investments Management Services Ltd is sponsoring stockbroker while GVTH Advocates serve as Legal Counsel to the Bond.