Chief Business Development Officer Kenneth Farrugia and Chief Officer Investment Services Romeo Cutajar attended the official event at the Malta Stock Exchange to formally commemorate the first day of trading in the presence of the MSE Chairman Joseph Portelli and CEO Simon Zammit.

“Here at the Malta Stock Exchange, we consider Bank of Valletta as an esteemed major issuer. The ringing of the MSE bell has become a rite of passage on the first day of trading and we are glad to add BOV’s latest Bond Issue on the Main Market,” said Mr Portelli.

“We are very pleased to have yet another financial instrument listed on the Malta Stock Exchange. We are very proud to be able to say that Bank of Valletta has consolidated itself as a solid and rewarding investment over the years, and the prompt take up of the offer confirms that the investing public firmly believes in the strength and success of the BOV Group,” Mr Farrugia added.

The post BOV lists €50m 3.75% bond on stock exchange first appeared on The Malta Business Weekly.

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

Funds will be predominantly directed to the acquisition of Kemmuna Ltd, the owner and operator of the Comino Hotel & Bungalows, Hili Ventures says in the press statement sent to BM.

Another €10m, however, 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, Hili Ventures adds.

Interest on the bonds commences on August 27 and refunds of unallocated monies will be made by 3 September, according to the press release. Hili Ventures expects to admit bonds to the Malta Stock Exchange on 4 September. Trading is expected to commence on 5 September.

Application forms become available as of 30 July from authorised financial intermediaries, while subscriptions will close on 20 August, or earlier if the bond issue is over-subscribed. Hili Finance will announce the basis of acceptance of applications and the allocation policy to be adopted by not later than 27 August 2019, the press release says.

Kemmuna Ltd purchase for €59m

Hili Finance is planning to spend €59m on acquiring of 100% shareholding in Kemmuna Ltd, a company that owns the Comino Hotel and Bungalows, as set in the purchase agreement the parties signed on 24 May 2019, according to the summary note of the bond issue.

The note underscores that the final execution of the deed of purchase depends on a “number of conditions precedent”. Hili Ventures is currently conducting its due diligence exercise related to the purchase.

The summary note adds that should Hili Ventures decide not to proceed with the purchase “for any reason as contemplated in the share purchase agreement”, the sum of €59m will be used to repay a “number of bank loans of Hili Ventures”.

Further information of the bond issue, including the summary note and other related documentation, is available at the official webpage of Hili Finance.

EDITORIAL NOTE: The present story has been updated with additional information on the planned purchase of Kemmuna Ltd. The additional content appears under the “Kemmuna Ltd purchase for €59m” and the lead has been duly updated.

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