“New Bond Issue – Hili Finance Company plc €60 Million Bond Issue Receives MFSA Approval…”

Hili Finance Company plc has obtained approval from the Malta Financial Services Authority (MFSA) for a €60,000,000 bond issue, which will be listed on the Official List of the Malta Stock Exchange.

The subscription period opens on 7th January 2026 and will run until 28 January 2026, or earlier if the issue is fully subscribed.

The bonds, guaranteed by Hili Ventures Limited, will carry an annual interest rate of 5%, payable from 6 February 2026.

They will be issued at a nominal value of €100 each, with a minimum investment requirement of €3,000. All categories of investors, including the general public, may subscribe.

Exchange Opportunity for Existing Bondholders

Bondholders of Premier Capital plc will have the option to exchange all or part of their bonds for the new Hili Finance Company bonds.

Holders of other Hili Ventures Group securities will also receive preferential access to the subscription.

Use of Proceeds

The net proceeds from the issue, estimated at €59 million, will be on-lent by the issuer to the guarantor and allocated as follows:

• Up to €32.5 million: Exchange and cancellation of older Premier Capital bonds for investors participating in the Exchangeable Bond Transfer, including optional cash top-ups.
• Approx. €1.6 million: Part-financing the acquisition of a property in Ħamrun.
• Approx. €3.5 million: Part-financing development and refurbishment of the hotel on Battery Street, Valletta.
• Up to €35 million: Depending on prior allocations, to support capital expenditure for the expansion of iSpot’s retail operations in Poland, including new store openings and store upgrades.
• Up to €18 million: Remaining funds will be applied towards the general corporate funding requirements of the group.

Bond Terms

The bonds will mature and be redeemable at their nominal value on 6 February 2033. Full bond documentation, including the prospectus dated 12 December 2025, will be available for download from 23 December 2025 via Hili Finance Company’s website.

Recent Group Activity and Market Confidence

This planned issue follows Hili Properties plc’s redemption of its €37 million 4.5% Unsecured Bonds 2025 in October, concluding the latest bond cycle after a strong interim performance in H1 2025.

The Hili Group has consistently demonstrated strong demand for its fixed-income securities; in 2024, an €80 million five-year bond issued by Hili Finance Company was oversubscribed within hours, reflecting strong investor confidence in the group’s creditworthiness and guarantee structure.

Timberland Invest Ltd is currently accepting applications. If you are interested in participating in this bond issue, please contact us at 20908100, and our team will be happy to assist you.

MIDI p.l.c. Enters into Promise of Sale for Fort Tigné

MIDI p.l.c. has entered into a preliminary agreement to transfer Fort Tigné, located within the Tigné Point development in Sliema, to J. Portelli Projects Ltd, a company owned by entrepreneur Joseph Portelli. The agreement was concluded on 16 December 2025 and concerns the assignment of the remaining duration of the temporary utile dominium held by MIDI, which forms part of a 99-year temporary emphyteusis originally granted by the Government of Malta in June 2000.

The asset comprises the historic fort building, its surrounding open areas, and a segregated basement-level parcel currently utilised as a loading and unloading area, all forming part of the wider Tigné Point site. The agreed purchase price amounts to €2.5 million and is payable in line with the terms set out in the agreement, with the final settlement due upon execution of the definitive deed of transfer.

The property will continue to be subject to its proportionate share of the annual ground rent payable to the Government of Malta, together with all rights, obligations, covenants, and restrictions stemming from the original emphyteutical concession. Completion of the transaction is conditional upon the satisfaction of various conditions precedent. In the event that these conditions are not fulfilled, the agreement will automatically terminate without further obligation on either party. The promise of sale remains effective until 30 April 2026.

MIDI has confirmed that the property is currently vacant, is not leased, and does not generate any rental income. Upon completion of the transaction, Fort Tigné will be removed from the company’s property holdings. The company has indicated that the proceeds from the sale are intended to be utilised towards the repayment of its €50 million bond, which is scheduled to mature in July 2026.

The promise of sale will remain valid until 30th April 2026.

CPHCL Finance plc Publishes Basis of Acceptance for €45 Million 2035 Bonds Following Early Offer Closure

CPHCL Finance plc has published the basis of acceptance for its €45 million 5.35% unsecured bonds redeemable in 2035, following the early closure of the offer period earlier this month. The bonds are guaranteed by CPHCL Company Limited.

Applications from holders of the existing €40 million 4.25% unsecured bonds maturing in 2026 totalled €37.37 million. Of this amount, €27.27 million was exchanged through the surrender of existing bonds, representing 68.18% of the outstanding 2026 issue, while €10.09 million related to applications for additional bonds. All applications from these bondholders were fully allocated.

A further €7.63 million was allocated through authorised financial intermediaries. This comprised the full €5 million initially reserved for intermediaries, along with €2.63 million of bonds not taken up by holders of the maturing issue.

Interest on the new bonds will accrue from 18 December 2025. Admission to listing on the Official List of the Malta Stock Exchange is expected on 22 December 2025, with trading scheduled to commence on 23 December. Trading in the remaining 2026 bonds is also expected to resume on the same date.

The issuer confirmed that redemption of the outstanding 2026 bonds, together with accrued interest, will take place on 12 April 2026. Bondholders who opted to exchange their holdings will receive interest at the 4.25% rate applicable to the 2026 bonds for the period from 12 April 2025 to 17 December 2025, payable within 30 days of the new bonds being listed.

CPHCL Finance plc is a special purpose vehicle responsible for the financing operations of CPHCL Company Ltd, the majority shareholder of the Corinthia Group (IHI plc). The group has diversified interests across hospitality, manufacturing, services and real estate.

Proceeds from the bond issue will primarily be used to refinance the 2026 bonds, with the remaining funds allocated to capital expenditure across the CPHCL Group. The group has previously indicated expectations of improved revenues and EBITDA by year-end, supported by the first full year of operations of newly opened hotels, alongside ongoing cost-control measures and potential asset disposals to reduce group debt.

Positive Financial Outlook for KA Holdings Limited

KA Holdings Limited, the Malta-based property development group, is projecting a net profit of €1.357 million for the year ending 31 December 2026, up €281,000 from the 2025 forecast.

The improvement is supported by stable rental income across the group’s portfolio, full occupancy at its flagship Centris I and II office complexes in Mrieħel, and continued cost discipline. Total revenue is expected to reach €2.489 million, marking an 8.97% increase year-on-year, with the Swieqi property maintaining consistent income levels.

On the cost side, the company forecasts a reduction in both direct and administrative expenses. Direct costs are expected to decline to €213,000, while administrative expenses are projected at €150,000, collectively strengthening operating performance. EBITDA is forecast at €2.125 million, up €254,000 compared to 2025.

From a balance sheet perspective, total assets are expected to stand at €42.907 million by year-end, with equity at €25.448 million and total liabilities of €17.458 million. Cashflow remains healthy, with a projected year-end balance of €1.537 million before accounting for a €750,000 sinking fund contribution, resulting in a net cash balance of €37,000.

The positive outlook follows strong interim results for the first half of 2025, when profit after tax rose 34.88% to €706,564, supported by full occupancy at Centris I and II and gains from prior disposals in Gżira.

Please note: This is the final Market Update for 2025. Our next Market Update will be published on 9th January 2026.
Wishing you a joyful Christmas and a prosperous New Year from all of us at Timberland.

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