International Hotel Investments p.l.c. (IHI) has announced its intention to issue €35,000,000 in 5.30 per cent unsecured bonds maturing in 2035, subject to regulatory approval.
The company has applied to the Malta Financial Services Authority (MFSA) for the admissibility to listing of these bonds, with plans for them to be listed and traded on the Official List of the Malta Stock Exchange (MSE).
IHI aims to use the proceeds from the new bond issue to partially finance the redemption of its existing €45,000,000 5.75 per cent unsecured bonds, which are set to mature on 13th May 2025. This move reflects the company’s strategy to gradually reduce overall debt exposure while simultaneously enhancing profitability across its operations.
The company's Board of Directors has emphasised a commitment to debt reduction, aligning with its broader financial strategy of maintaining long-term sustainability.
In recent years, IHI has focused on expanding its portfolio, launching new hotel operations in New York and Brussels, with additional properties set to open in Bucharest, Rome, and the Gulf region within the next 12 months.
Once regulatory approval for the new bonds is secured, holders of bonds maturing in 2025 will be given preference to subscribe to the new issue. This will be facilitated by the surrender of the corresponding nominal value of their current bonds, allowing existing investors to transition into the new bond structure seamlessly.
To ensure eligibility for this offer, IHI has set a Cut-Off Date of 19th February, meaning that bondholders must be registered as holders of the Maturing Bonds as of the trading session of 17th February. Trading of the Maturing Bonds will cease on the Malta Stock Exchange at the close of business on 17th February until further notice.
Further details on the new bond issuance will be disclosed once the MFSA grants the necessary regulatory approval.
IHI, the trading name of Corinthia Group, owns and manages a number of hotels in four different continents, and has also delved into residential and commercial real estate markets through a range of investments in subsidiary and associate companies. In Malta it owns the iconic Corinthia Palace Hotel & Spa, as well as Corinthia Oasis, Corinthia St George’s Bay, Radisson Blu Resort & Spa, Radisson Blu Resort, and Verdi St. George's Bay Marina.
Corinthia Group has five hotels in the works, all scheduled to be open by 2026. These are spread across Europe (Bucharest and Rome in 2025), the Middle East (Doha in 2025 and Diriyah in 2026), as well as South Asia (Maldives in 2026). All of these hotels are owned by third-party investors.
