MIH announces new bond issue at 7.5%

July 18, 2008

The Malta Stock Exchange Index (MSE) closed at 4158.185 points, losing 0.12% on the week and now close to 16% on the year. During the week, eleven equities were negotiated, with five equities closing in positive territory, four in negative territory, whilst the rest remained stable. During the week, Grand Harbour Marina plc was the best performer whilst GO plc lost most ground.

A total of one hundred and fifty eight trades were registered on the stock exchange for a turnover of over EUR 12.1 million. In the equity market eighty nine deals were executed for a value of EUR 710,291, whilst in the corporate bond market eighteen deals were carried out for a total value of EUR 63,499. In the government bond market forty three deals were executed for a total value of over EUR 8.4 million. In the Treasury Bills market eight deals were executed for a total value of over EUR 2.92 million.

In the banking sector, the share price of HSBC Bank Malta plc lost some ground during the week. The equity closed at Euro 3.81, falling by EUR 0.01, on a turnover of 27,640 shares traded over twenty four deals. HSBC announced that the Board of Directors is scheduled to meet on Friday 25 July 2008 to approve the Group’s and the Bank’s Interim Accounts for the half-year ending 30 June 2008 and consider the declaration of an interim dividend. On the other hand, the share price of Bank of Valletta plc started recovering from last week’s fall, as it increased by 1.52%, as 20,879 shares changed hands over twenty two deals, with a total turnover of EUR 97,068. BOV closed the week at EUR 4.67, having gained EUR 0.07 during the week. Lombard Bank plc retained last week’s share price as it closed at EUR 2.90, with 1,093 shares changing hands, as it traded once during the week. FIMBank plc experienced an increase in its share price, closing the week at USD 1.869, increasing by 0.48% on the week, on a turnover of 8,300 shares traded over two deals.

Grand Harbour Marina plc was the best performer of the week, as it saw its share price increase again during the week by more than 4%, closing the week at EUR 2.25, with 6,437 shares changing hands over six deals. Crimsonwing plc registered an increase of 1.92% in its share price, recovering some of last week’s losses. Crimsonwing closed at EUR 0.53 with a volume of 6,762 shares on two deals. The Board of Directors of Crimsonwing are due to meet on the Tuesday 29 July 2008, to amongst other matters, approve the financial statements for the year ended 31 March 2008. Simonds Farsons Cisk plc share price appreciated by 1.07% over the week, as it closed at EUR 2.83, with 2,135 shares changing hands over just one deal.

GO plc lost most ground during the week, as its share price decreased by 3.85% to EUR 2.50. GO traded twelve times during the week for a total volume of 7,594 shares. The share price of Malta International Airport plc (MIA) lost 1.89% of its share price and closed at EUR 3.061 as 9,762 shares changed hands in five deals, with a turnover of EUR 29,886. MIA announced that at a meeting of the directors the interim financial statements for the financial period ended 30 June 2008 were approved. Profit after tax for the six month period to 30 June 2008 was of Euro 3.322 million, which is 26% higher than the profit after tax for the same period last year. This significant increase was largely due to the increase in traffic during the period. The Group’s turnover for the period compared to the same period in 2007 was up 9.3%. The directors have also approved a net interim dividend of €0.06 per share equivalent to €4,059,000, for payment to shareholders on the register of shareholders as at close of business on 31 July 2008. International Hotel Investments plc experienced a 0.10% decrease in its share price, as it closed the week at EUR 1.049, as 1,500 shares changed hands on three transactions.

MaltaPost plc retained last week’s price, with 520,031 shares changing hands over twelve deals, closing the week at EUR 0.80.

Subscriptions for the 6.75% €10 million bond issued by United Finance p.l.c., a member of the United Group, closed as scheduled on Thursday. The Bond Issue was fully subscribed and the Company will be exercising the over-allotment option of €2 million bringing the total bond issue to €12 million.

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Mediterranean Investments Holding p.l.c. (MIH), a subsidiary of Corinthia Group of Companies, is issuing a new bond for €15 million bearing an interest rate of 7.5% per annum and maturing on 4 August 2015. The funds will be utilised to finance further planned expansion in the Libyan market by MIH. If over-subscribed, the issue may be increased to €20 million. This is the second bond issue by MIH, who issued its first bond in November 2007 to finance the building of Palm City Residences — a newly built village in Janzour, Libya. MIH, is a joint venture between the Corinthia Group of Malta and the National Real Estate Company of Kuwait, was set up in 2005. Subscriptions for the bond issue will open on 28 July.

This article which was complied by Jesmond Mizzi Financial Services Limited (JMFS) does not intend to give investment advice and the contents therein should not be construed as such. JMFS is licensed to conduct investment services by the MFSA. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information please contact JMFS at 67/3, South Street, Valletta or on Tel: 21224410 or email [email protected].