On 3 March Corinthia Finance plc announced the allotment policy with respect to its recent €15 million 6.25% 2016-2019 bond issue. The issue was heavily oversubscribed and closed immediately with a total of €23.7 million worth of subscriptions received from preferred applicants as well as from new investors.
€12,046,700 worth of subscriptions were received from holders of the 6.5% bonds maturing on 8 April 2010, representing 84% of the total value of the maturing bond. The Company stated that these applications will be met in full.
Meanwhile, Corinthia Finance announced that it received a further €1.45 million worth of new applications from existing 6.5% bondholders and a further €10.2 million from new investors. In view of the over subscription, Corinthia announced that these applications had to be scaled down to a total value of €2.95 million and the allocation policy has been established at 25.3% of the application value.
Interest on these bonds starts accruing from today. Allotment letters and refunds will be processed by next Thursday 10 March 2010. The new 6.25% bonds will shortly be admitted to the Official List of the Malta Stock Exchange.