MaltaMedia.com

International Hotel Investments p.l.c. announced the issue of a €25 million ten year Bond bearing an interest rate of 6.25% per annum. The Bonds are redeemable in 2020 but may be redeemed earlier, as from 2017 at the Issuer’s option.

Mr Joseph Fenech, Managing Director of IHI, presented the details of this Bond Issue during a press conference held today at the Corinthia Palace Hotel & Spa.

The proceeds from the Bonds will be principally used to redeem the outstanding amount of the 5% IHI convertible bond which matures on 29^th May 2010 and to repay in full, of an existing loan facility.

Applicants holding the maturing 5% IHI convertible bond who surrender their existing holding in favour of a holding in the new Bond will be given preference, as well as registered shareholders and bondholders of the Corinthia Group. These include IHI, Corinthia Finance p.l.c. and Mediterranean Investments Holding p.l.c.

Application forms and copies of the Prospectus are available from Friday 5^th March from authorised financial intermediaries. Subscriptions open on Wednesday 24^th March and the offer closes on Tuesday 30^th March or earlier if over-subscribed.

During the press conference, Mr Fenech said: “IHI’s prudent approach to business, coupled with the Group’s fine-tuned business acumen and knowledge of the industry in which we operate, has helped the company turn these challenging times into an opportunity to invest in international markets. At present we are focusing strongly on major cities in Western Europe and the strategy is to continue identifying investment opportunities in a number of mature markets like Rome and Paris. As a result of the geographical spread of our assets, IHI managed to limit the impact of the effects of the recession from its feeder markets. We are grateful to the Maltese public for their continuous support of our strategy and we are confident that the upcoming Bond issue will be no different.”

IHI launched as a publicly-traded company in 2000, with the intention to acquire, develop and operate upscale hotels and ancillary real estate in Europe and beyond, principally in fast-evolving destinations. Its investments to date have featured a combination of new-construction of landmark developments, as also the acquisition of existing hotels, where IHI has maximized the earnings potential of each of the acquired hotels by way of major refurbishment and expansion projects.

The bond is managed by Bank of Valletta p.l.c., which is also acting as Bond Registrar. Charts Investment Management Service Limited sponsor stockbrokers while Camilleri Preziosi Advocates serve as legal counsel to the Bond.