4.25% CORINTHIA FINANCE PLC 12.04.2026

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Corinthia Finance plc - Prospectus dated 18 March 2016

The Company

Corinthia Finance plc acts as a finance company for the Corinthia Group and is a fully owned subsidiary of Corinthia Palace Hotel Co. Ltd.

The Corinthia Group, of which Corinthia Palace Hotel Company Ltd (CPHCL) is the parent company, started its commercial activities in the 1960’s.

Today, the Corinthia Group is split into 5 main business units:

  • Investment and acquisition of prime site hotel real estate through International Hotel Investments plc (IHI) & Island Hotels Group Holdings plc (IHG);
  • Development of residential, commercial and retail centres through Mediterranean Investments Holding plc (MIH);
  • Hotel management in Europe, Middle East, the Russian Federation and Africa through CHI Ltd;
  • Construction and project management services through QPM Ltd & CCOL Ltd;
  • Industrial Operations through a number of other subsidiaries.

Over the years, the Corinthia Group built up a portfolio of hotels in various countries. The Group’s recent growth is being channelled through International Hotel Investments plc (in which CPHCL holds a 58.9% equity stake), Island Hotels Group Holdings plc (which is fully owned by IHI) and Mediterranean Investments Holding plc, where it owns 50%.

In addition to property investments and developments, the Corinthia Group has interests in 9 other companies providing a wide array of services to both the Corinthia Group of companies as well as to third-parties. The services offered include hotel management services, project management services, production and distribution of bakery products, catering services (including retail & event catering) and provision of in-flight catering.

CPHCL is today equally owned by the Pisani Family and the Libyan Foreign Investment Company (LFICO). CPHCL was originally established in 1962 by the Pisani Family in Malta with the launch of an upscale restaurant in Malta which at the time was called the Corinthia Room. In 1968, this property was expanded into a 155-room luxury Corinthia Hotel. The Libyan sovereign wealth fund (LFICO) acquired a 50% shareholding in CPHCL in 1974 and since then this joint-venture expanded internationally through the investment, development and management of a number of Corinthia Hotels.

Use of Proceeds

The net proceeds from this bond issue, estimated at €39,575,000 after issuance costs, will be used by the Issuer to finance the redemption of the €39,927,600 6.25% bonds which will be redeemed on 24 September 2016. Any residual balance of the maturing bonds will be financed through the Group’s own cash resources.  

Security & Status

The bonds constitute the general, direct, unconditional and unsecured obligations of Corinthia Finance plc and are guaranteed by CPHCL and shall at all times rank pari passu without any priority or preference among themselves and with other guaranteed debt. 

Guarantor

Corinthia Palace Hotel Company Limited (CPHCL)

Coupon

4.25%

Amount Issued

€40,000,000

ISIN Code

MT0000101262

Maturity

The bonds will mature at par (100%) on 12 April 2026.

Interest Payment

Annually on 12 April

XD Date

29 March

Listing

Official List

Directors

Joseph Fenech, Anthony R. Curmi, Frank Xerri de Caro, Joseph J Vella.

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