Hili Finance Company plc launches €80 million bond issue, aims to acquire Comino hotel

Hili Finance Company plc, a subsidiary of Hili Ventures Ltd, has launched an €80 million bond issue, maturing in 2029, with funds mainly directed to the acquisition of Kemmuna Ltd, the owner and operator of the Comino Hotel & Bungalows.

The unsecured bonds, at a nominal value of €100 per bond issued at par, bear an annual interest rate of 3.8%.

In a statement Hili Finance Company plc said: “Funds will be predominantly directed to the acquisition of Kemmuna Ltd, the owner and operator of the Comino Hotel & Bungalows. €10 million will be advanced to Cobalt Leasing Ltd to finance the acquisition of new containers to be leased to shipping lines on a long-term basis. The remaining balance will be used to fund group-wide investment opportunities.

According to the Summary Note accompanying information on the Group’s website, “The acquisition of the Comino Hotel and Bungalows is being made with a view to developing the site into a mixed-use hospitality project including a luxury hotel and up market serviced bungalows. In this respect, Hili Ventures will be subject to a number of specific risks normally encountered in similar developments, including: the risk of delays in obtaining the necessary planning permissions; the risk of cost overruns; the risk of construction delays which particularly may entail logistical issues due to the unique location of the Comino Hotel and Bungalows on the island of Comino; and the risk of insufficiency of resources to complete.”

This indicates that the Group intends to develop the site.

Hili Finance Company plc acts as the finance company for Hili Ventures and its subsidiaries. Operating from Malta, Hili Finance Company plc acquires, holds and manages assets and other financial interests for Hili Ventures, of which it is a wholly owned subsidiary. The company raises finance for the business of Hili Ventures through the issue of bonds on the Malta Stock Exchange.