Mediterranean Investments Holding plc - New Bond Issue

Mediterranean Investments Holding plc published a Prospectus on 15 July 2008 in connection with a new €15 million bond issue. The new bonds are for a 7-year period (with a maturity date of 4 August 2015) and carry a coupon of 7.5% per annum. The company reserves the right to increase the amount up to €20 million.

Subscriptions open on Monday 28 July and close on Friday 1 August or earlier in the event of over-subscription. Applications are for a minimum of €5,000 (nominal) and in multiples of €100 thereafter. MIH has submitted an application for the bonds to be admitted to the Alternative Companies List of the Malta Stock Exchange. Investors ought to note that the Alternative Companies List is a second tier market designed primarily for start-up companies carrying a higher investment risk.

MIH is a joint-venture between Corinthia Palace Hotel Company Limited (CPHCL) and the National Real Estate Company (NREC) of Kuwait. The principal objective of MIH is to acquire and develop real estate opportunities in North Africa, including opportunities with respect to retail outlets, shopping malls, office and commercial buildings, housing, build-operate-transfer, governmental projects and conference centres.

The company owns the entire share capital of Palm City Limited and has a 30% shareholding in QP qpm-projacs Limited and a 10% shareholding in Agility (Libya) Limited.

MIH is currently pursuing a number of projects to sustain its expansion strategy in the real estate market in Libya  and this new bond is being used to partly finance the acquisition of any one of these projects.

The three projects currently being considered by the Company are:

1. Tripoli Commercial & Residential Towers (TCRT) – this involves the potential acquisition of a shareholding in a company owning a plot of land measuring approx. 13,000 sqm in the Libyan capital. An architectural concept for the development has been prepared and this includes a 26-floor high rise building consisting of high-end serviced apartments, office and retail space. Apart from taking a stake in this company, MIH would also take full responsibility for constructing, project managing as well as operating the Towers after completion.

2. Fawar, Tripoli – this project entails the potential acquisition and development of a large site measuring 550,000 sqm close to the Mitega Airport in Tripoli – a secondary airport used primarily by private jets. If successful, MIH would act as lead developer of the site, although it would not necessarily carry out the full development on its own. The Company intends to carry out developments in some parts of the site and would invite a number of other investors to participate in this development. The concept includes a city development providing accommodation as well as health and leisure facilities including a yacht marina and a number of restaurants.

3. Misurata Village – this involves the potential acquisition of a plot of land, currently owned by CPHCL, measuring 170,000 sqm located 2km away from the Misurata Free Trade Zone. Misurata is one of the most up-and-coming commercial hubs on the North African coast. Since the Government of Libya announced the distribution of a number of vast offshore exploration concessions to oil companies in the vicinity, the Misurata Free Trade Zone experienced significant business interest from international companies involved in oil exploration. The proposed development is aimed at supporting the growing community of local and expatriates related to the increasing business activity in the Misurata Free Trade Zone. MIH intends to develop a 4-star 200 room hotel, 300 residential units (half of which would be sold with the balance leased out on a long term basis), a commercial centre, extensive entertainment and leisure facilities, as well as a school for the expatriate community.

For further information on MIH and the bond issue, investors are requested to consult the Prospectus and the Company Update which is available on our website or by email upon request.

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