Hili Finance Company plc on Tuesday announced that it has received approval from the Malta Financial Services Authority (MFSA) for a five-year €80 million bond issue to be listed on the Official List of the Malta Stock Exchange.

The unsecured bonds, guaranteed by Hili Ventures Limited, will bear an annual interest of five per cent, starting from 17th July 2024. They will be available for subscription by all categories of investors, including the general public, and are redeemable in 2029.

The bonds will be issued at a nominal value of €100 each, with a minimum investment of €3,000.

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.

Bondholders of 1923 Investments plc will be given the opportunity to transfer all or part of their bonds in exchange for new bonds being issued by Hili Finance Company plc.

Additionally, holders of other Hili Ventures securities shall also be granted preferential access to subscribe to the new bond issue. These include Directors and employees of Hili Ventures Limited and its parent and subsidiary entities, as well as holders of securities of Harvest Technology plc, Hili Properties plc, Premier Capital plc and Hili Finance Company.

Up to €10 million in nominal value of bonds together with any balance of bonds not taken up by holders of the aforementioned securities shall be made available for subscription by the general public, without priority or preference.

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 the 1923 Investments 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.

The bond issue will be open for subscription from 19th June 2024 to 10th July 2024, or earlier at the discretion of the issuer. The bonds will mature and be redeemable at their nominal value on 17th July 2029.

Hili Finance Company Chairman Geoffrey Camillieri remarked that the company is excited to offer this investment opportunity to its stakeholders and the general public.

“This bond issue is a crucial step in the group’s strategic growth plan, enabling it to continue to invest in acquisitions and network expansion,” he added.