On 15 September Corinthia Finance plc announced its €20 million bond issue was oversubscribed and subscriptions closed at 10 am in view of the strong demand from preferred applicants as well as from new investors. As a result the company is expected to exercise its over-allotment option and increase the total bond issue to the maximum amount of €25 million.
The 10-year 6.25% bonds were mainly issued to finance the redemption of the €19.4 million 6.7% bonds which are due to mature on 30 October 2009. No details were provided as yet on the amounted issued in favour of the preferred applicants who opted to invest in these new 6.25% bonds by transferring their holding of the 6.7% bonds. Such applicants will be receiving the full amount applied for. Meanwhile the amount received from the General Public and subsequent allocations to these investors will be published by Corinthia Finance once the allocation policy is released by next Wednesday 23 September.