Hili Finance Company plc - Basis of Acceptance and Allocation Policy

On 1 July 2024, Hili Finance plc announced the basis of acceptance and allocation policy in relation to the offer of €80 million 5.0% unsecured bonds redeemable in 2029.

Hili Finance explained that as at 19 June 2024, it received 6,093 applications for a total value of €102.2 million. As a result of the over-subscription, the offer was closed ahead of schedule.

Hili Finance received 1,863 applications totalling €42.4 million from holders of 5.1% 1923 Investments plc 2024, of which €24.2 million (representing 67.3% of the outstanding maturing bonds) were exchanged for the bonds and were allocated in full. The remaining €18.2 million were grouped up with other preferred applicants.

There were 2,897 applications from other preferred applicants totalling €40.4 million. Therefore, the total preferred applicants’ pool amounted to €58.7 million, including the additional amounts applied for by 5.1% 1923 Investments plc bondholders. Preferred applicants were allocated 77.917% (€45.8 million) of the amounts applied for rounded to the nearest €100.

Furthermore, Hili Finance received 1,333 applications from the general public amounting to €19.5 million of which 51.3% (€10 million) were allotted rounded to the nearest €100.

The company explained that refunds of unallocated amounts will be made by 8 July 2024. The new bonds are expected to be admitted to listing on the Official List of the Malta Stock Exchange on 8 July 2024 and trading is expected to commence on 9 July 2024.

Interest on the new bonds will start to accrue on 8 July 2024 and will be payable annually in arrears on 17 July, with the first interest payment (covering the period from 8 July 2024 up to and including 16 July 2025) payable on 17 July 2025.

Within 30 calendar days from the admittance of the bonds to listing, 5.1% 1923 Investments plc 2024 bondholders surrendering their respective holdings will receive the 5.1% interest covering the period between 5 December 2023 and 7 July 2024 as well as 0.1% interest attributable to the period between 8 July 2024 and 4 December 2024.

In a separate announcement, 1923 Investments plc announced that the outstanding bonds that were not exchanged will resume trading as from 8 July 2024.