International Hotel Investments plc - Details of New Bond Issue

On 1 November 2021, International Hotel Investments plc published a Prospectus in relation to a new €80 million bond issue maturing in 2031. The salient features of the new bonds are as follows:



Amount Offered:

€80 million

Issue Price:

100% (par)

Interest Payment Date:

Annually on 7 December (with the first interest payment date being 7 December 2022)

Maturity Date:

7 December 2031

Use of Proceeds:

The net proceeds from the bond issue, estimated at €79.2 million after issuance costs, will be used by the Group for the following purposes, in the amounts and order of priority set out below:

  • €20 million for the redemption and cancellation of the 5.8% IHI plc 2021 unsecured bonds redeemable on 21 December 2021, by way of maturing bond transfer and redemption of any remaining bonds in issue.
  • €9 million to finance obligations arising under the preliminary lease agreement pertaining to the Corinthia Hotel Rome, which includes pre-operating costs, purchasing of supplies and operating equipment, and other capital expenditure towards the general cost of works for the development of the hotel.
  • €8 million for the partial financing of a premium payable under the management contract for the Corinthia Hotel New York.
  • €14 million for the partial financing of preparatory works at the Hal-Ferh Site including excavation, demolition and development of a car park adjacent to the site.
  • €20 million to finance the soft refurbishment of the Corinthia Palace Hotel & Spa (€5 million) and the Corinthia Hotel St. George’s Bay (€15 million).
  • €8.2 million for general corporate funding purposes of IHI.

Status & Ranking:

The bonds will constitute the general, direct, unsecured, and unconditional obligations of the Issuer and will, at all times, rank pari passu, without any priority or preference among themselves and with other unsecured debt of the Issuer, present and future, if any.

This means that any secured or privileged debts of the Issuer will rank at all times ahead of the obligations of the Issuer under the bonds, as a result of which bondholders may not be able to recover in full or in part their investment in the bonds in the case of insolvency or an equivalent situation, whether in full or in part.

Furthermore, subject to a negative pledge clause found in the Prospectus dated 28 October 2021, third party security interests may be registered which will rank in priority to the Bonds against the assets of the Issuer, as the case may be, for so long as such security interests remain in effect, which registration may further impede the ability of bondholders to recover their investment upon enforcement of such security interests, whether in full or in part.

Plan of Distribution:

Maturing Bond Transfer

Holders of the 5.8% IHI plc 2021 unsecured bonds (“Maturing Bondholders”) may elect to settle all or part of their current bond holding by the transfer to the Issuer of Maturing Bonds at par value, subject to a minimum application of €2,000 (nominal).

Placement Intermediaries’ Offer

An amount of €30 million of the bond issue is reserved for subscriptions from Placement Financial Intermediaries through Placement Agreements.

Corinthia Group Applicants

An amount of €3 million is reserved for subscriptions by Corinthia Group Personnel

General Public Offer

The remaining amounts will be allocated according to the following order of preference:

  1. Existing IHI Bondholders (including additional amounts from Maturing Bondholders), IHI Shareholders, and Corinthia Group Personnel
  2. Existing Corinthia Bondholders and MIH Bondholders
  3. The General Public.

The bond issue is subject to a minimum subscription amount of €50 million.

 Closure of Subscriptions – General Public:

30 November 2021 at 14:00 hrs (or earlier in case of oversubscription)

Minimum Subscription Amount:

€2,000 (nominal) and in multiples of €100 thereafter.


Official List of the Malta Stock Exchange


Prospectus dated 28 October 2021

Bond Fact Sheet


This webpage has been prepared based on the Prospectus dated 28 October 2021 issued by International Hotel Investments plc and no representations or guarantees are made by Rizzo, Farrugia & Co. (Stockbrokers) Ltd with respect to the accuracy of the data. This webpage is for information purposes only. It is NOT intended to be and should NOT be construed as an offer or solicitation to acquire or dispose of any of the securities or issues mentioned herein. Rizzo, Farrugia & Co. (Stockbrokers) Ltd accepts NO responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this webpage.

Investors wishing to acquire the Bond should read the Prospectus before making any investment decision in order to fully understand the potential risks and rewards associated with an investment in the Bonds. A copy of the Prospectus is available on Rizzo, Farrugia & Co. (Stockbrokers) Limited’s website. Prospective investors are urged to consult their financial advisers as to the suitability or otherwise of acquiring such Bonds. The value of the investment and the income therefrom may go down as well as up and investors may lose some or all of the money invested.

This advertisement has been issued by Rizzo, Farrugia & Co. (Stockbrokers) Limited, a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta, and having its registered address at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta