Hili Finance Company plc on Wednesday (today) announced that its €80 million bond issue has been oversubscribed, just a few hours after being open for subscription.

The five-year unsecured bonds, guaranteed by Hili Ventures Limited, will bear an annual interest of five per cent, starting from 17th July 2024. They are redeemable in 2029 and carry a nominal value of €100 per bond.

The company stated that the offer was oversubscribed and the offer period closed earlier today at noon, on the same day it opened.

As a result, the basis of acceptance of the bonds shall be brought forward. Hili Finance Company said that it will be communicated by latest 1st July 2024.

“The company wishes to thank the investing public and authorised financial intermediaries for their tremendous support in this bond issue,” it continued.

Hili Finance Company plc is the finance arm of Hili Ventures, a diversified group engaged in food service and retail, real estate and hospitality, shipping, oil and gas, engineering, and technology in 10 countries across Europe and North Africa with a team of more than 12,000 employees.

As listed in a securities note published by the company, up to €36 million of the bond issue shall be used to exchange and cancel 1923 Investments plc’s bonds.

Depending on the amount not used for the exchange of the aforementioned bonds, up to €56 million will be applied to re-finance, in part, capital investments made by Hili Ventures for the acquisition of Cortland Sp. Z o.o by iSpot Poland Sp. Z o.o, together with the investment by Marsamxett Properties Limited in Tigné Mall in 2023.

Any proceeds not utilised will be used for general corporate funding purposes.

Hili Finance Company Chairman Geoffrey Camilleri had stated that this bond issue represents a “crucial step” in the company’s strategic growth plan, enabling it to “continue to invest in acquisitions and network expansion.”