Mediterranean Investments Holding plc (MIH) announced on 17th May that it had applied to the Malta Financial Services Authority(MFSA) requesting admissibility to listing on the official list of the Malta Stock Exchange (MSE) for a maximum of €20 million unsecured bonds, having a coupon of 5.85 per cent payable annually in arrears, to be issued at par and maturing in 2028.
The net proceeds from this bond issuance will be used by the issuer to redeem its €20 million, 5.5 per cent unsecured bond that matures on 31st July 2023.
The new bonds will be guaranteed by CPHCL Company Limited (C257), the parent company of the Corinthia Group, both interms of annual interest and capital repayment upon maturity.
MIH said that it would be giving preference to holders of the maturing bonds as at close of trading on 30th May 2023, to subscribe to the new bonds. Further detail would be published once regulatory approval is granted.
In 2022 MIH registered total revenue of €25 million, 4.25 per cent higher than in 2021. This increase was driven by higher average rates. Although operating and other expenses for 2022 were kept at relatively low levels, operating profit was €1.4 million lower than the previous year at €17.5 million. Notably, however, the previous year had seen the company recording an exceptional amount of € 2.1 million as other income.
Compared to the previous year, finance costs decreased substantially in 2022 as 2021 had been negatively impacted by the devaluation of the Libyan Dinar. There was also a reduction in bond interest costs in 2022 following the redemption of the six per cent bond in 2021 and a reduction of €10 million in bonds in 2022.
The group registered a consolidated profit after tax of €10.8 million which is in line with the €10.7 million of 2021.
The group assets amount to €306 million as at the end of 2022, down from the €310.9 million at the end of 2021. This was primarily the result of a decrease in current assets, notably cash and cash equivalents and debtor balances.
On the liabilities side, bond indebtedness decreased by €10 million and the loan of five million euro payable to Lafico was settled in full in February 2022. Total liabilities decreased from €122.3 million to €106.5 million by the end of 2022.
In terms of cash flow, the group registered a cash and cash equivalence of €6.9 million in 2022, down from the €10.9 million declared in 2021.