Hili Finance Company plc has published a Prospectus for a €50 million bond issue that is due to open on Monday 14th February after obtaining approval from the Malta Stock Exchange.

The unsecured bonds will have a coupon of four per cent and mature in March 2027.

The injection of capital will allow Hili Finance to refinance two major outlays, and comes shortly after sister company Hili Properties completed its Initial Public Offering.

Over a third, €17 million, will go towards refinancing an acquisition completed by 1923 Investments plc, another group company, of all non-US ship-to-ship operations from marine energy transporter Teekay Tankers Ltd.

Another €18.4 million are earmarked for the refinancing of an equity investment made by the company in Hili Properties in that company's IPO. 

Meanwhile, €13.85 million are meant to support Hili Ventures Group in general corporate funding. 

The offer begins on 14th February and runs until 4th March (or earlier in the case of oversubscription). 

The minimum subscription amount is €5,000, which increments of €100 possible thereafter.

An amount of €22.5 million has been reserved for subscriptions by Authorised Financial Intermediaries through Placement Agreements.

Just over half (€27.5 million) of the bonds will be allocated to preferred applicants, these being bondholders of 1923 Investments plc, Hili Properties plc, Premier Capital plc, and Hili Finance Company plc, shareholders of Hili Properties plc, shareholders of Harvest Technology plc, and Hili Ventures shareholders and employees, with any remaining balance of the bonds made available for subscription by Authorised Financial Intermediaries.

You can see the full Prospectus here.