6.0% MED. INV. HOLDING PLC 2021

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Mediterranean Investments Holding plc - Prospectus dated 2 June 2014

The Company

Mediterranean Investments Holding plc (MIH) was incorporated as a private limited liability company on 12 December 2005 and converted to a public limited liability company on 6 November 2007. MIH is a joint-venture between Corinthia Palace Hotel Company Limited (CPHCL) and the National Real Estate Company (NREC) of Kuwait.  

Palm City Limited (99.99%)

Palm City Limited manages the Palm City Residences project through a build-operate-transfer agreement with CPHCL who holds legal title to the land on which the development is constructed. This unique development in Janzour, Libya, constructed over a plot of land measuring 171,000 square metres, is a 413 residential unit compound including residences ranging from one-bedroom apartments to four-bedroom fully-detached villas complemented by a variety of amenities and leisure facilities.

The Company is involved in two other projects in Libya as detailed below. However, in the light of the prevailing situation in Libya, works on these two projects have been put on hold.

Palm Waterfront (100%)

This wholly-owned subsidiary will be primarily engaged with the development and operation of the Palm Waterfront site, measuring 50,000 square metres, located adjacent to the Palm City Residences. The new site will comprise a 164-room 5-star hotel, 259 residential units (to be offered for lease or outright sale depending on market conditions), an entertainment centre, retail outlets, car park and a marina.

The project will be initiated once the situation in Libya stabilises and the subsidiary raises the required funding (40% equity and 60% debt) to complete the development phase. This development is also dependent on obtaining the necessary planning approvals from the authorities in Libya.

Medina Tower (25%)

The Medina Tower Joint Stock Company is equally owned by Arab Union Contracting Company of Libya, Alinmaa Holding Company for Tourism & Real Estate Investments of Libya; MIH and International Hotel Investments plc. The Medina Tower joint-venture company, set up in 2010, will develop a parcel of land situated in Tripoli’s main high street and measuring 11,000 sqm into a 42-storey high-rise tower comprising a mix of residential properties as well as retail, commercial, conference facilities, spa and car park. Overall, the property will comprise a total gross floor area of circa 200,000 square metres.

The project designs of the Medina Tower are complete and all development approvals have been obtained from the relevant authorities. Furthermore, the main construction contract was signed on 5 September 2012. The financing for the first phase of the project is already in place whilst the remaining funding required will be raised through a bank loan. In this respect, the Issuer has signed a term sheet with a Libyan financial institution.

Use of Proceeds

The proceeds from this bond issue, estimated at €11.8 million after issuance costs, will be used by the Issuer to part finance the redemption of the outstanding €14.76 million 7.5% bonds which mature on 4 December 2014. The remaining balance of the Maturing Bonds will be financed from the Issuer’s general cash flows.

Status & Security

The Bonds constitute the general, direct, unconditional and unsecured obligations of the Issuer, and shall at all times rank equally, without any priority or preference among themselves and with other unsecured debt, if any.

However, the indebtedness of the Group includes bank loans and a third party loan which are secured by a number of pledges and mortgages. These new bonds rank after these bank borrowings. In addition, the Bonds would also rank after any future debts which may be secured by a pledge, mortgage, privilege and/or hypothec.

Coupon

6.0%

Amount Issued

€12,000,000

ISIN Code

MT0000371261

Maturity

The bonds will mature at 100% (par) on 22 June 2021.

Interest Payment

Annually on 22 June

XD Dates

7 June

Listing

Official List

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