€30 million 7.15% MIH Bond subscriptions open to the public

Last week, the Listing Authority (MFSA) concluded that the company’s track record satisfies all the necessary criteria for the existing MIH bonds to be upgraded from the Alternative Companies List to the Official List of the Malta Stock Exchange. The official notice announcing the upgrade was issued by the Council of the Malta Stock Exchangelast Thursday 1 July 2010 therefore admitting the €15,000,689 (nom) 7.5% 2012-2014 Bond (MT 0000371212) and the €20,000,000 (nom) 7.5% 2015 Bond (MT 0000371220) to the Official List. 

The new €30 millionBonds are redeemable in 2017 but may be redeemed earlier, as from 2015 at the Issuer’s option. In the case of over-subscription, the Bond issue will be increased by €10 million up to a total of €40 million.

The aggregate bonds are being issued in any one or any combination of three currencies: in Euro with a nominal value of €100 per bond, in Pound Sterling with a nominal value of £100 per bond and in United States Dollars with a nominal value of $100 per bond.

The proceeds from the Bonds will be principally used for the furthering of the company’s expansion strategy in the real estate market in Libya. The Medina Tower, a mixed used development in the heart of Tripoli will be a 40 storey building comprising a significant number of luxury apartments for sale together with large commercial and retail areas for letting, all backed up by substantial underground parking.

Estimated at a  total cost of €300 million, the Medina Tower development comprises residential, office, retail and leisure accommodation within a self-contained ‘vertical town’ that is expected to become the market leader in its sector by establishing itself as a neighbourhood-serving commercial centre that is also a vibrant arts, cultural and entertainment centre.

Built on a land plot measuring 11,000m², the development will span a total floor area of 200,000m² with 138, 000m² above ground level  and spread over 40 floors. Constructionwill take 44 months to complete and the first tenants are expected to move in during the first half of 2014.

MIH has recently completed its first project in Libya – Palm City Residences, an entire village of 413 units that has already established itself as the most upmarket residential development in the country. Palm City Residences already registered profit in its first year of operations - a remarkable achievement when considering that the first tenants moved in during the month of June 2009 when the development was still very much of a construction site.

Over 60% of the 413 units have already been leased out, with occupancy expected to reach 95% by the end of this year.

Bank of Valletta p.l.c. and HSBC Bank Malta are joint managers for the bond while Bank of Valletta is acting as Bond Registrar. Rizzo Farrugia & Co. are sponsoring stockbrokers while Camilleri Preziosi Advocates serve as legal counsel to the Bond.