Curmi & Partners

New Bond Issue

3.85% Hili Finance plc 2028

Hili Finance plc (“the Issuer” or Hili Finance”) will be issuing a bond amounting to €40 million with a coupon of 3.85% maturing in 2028 (“the Bond Issue”). The Issuer is a wholly owned subsidiary of Hili Ventures Ltd (“the Group” or “the Guarantor”), an investment holding company established in 2012. Hili Finance was incorporated in April 2018 to carry on the business of a finance vehicle for the Group. The Issuer is dependent on the performance and prospects of the group.

Maturity

18th July 2028

Coupon 3.85%
Price €100
Coupon Frequency Annual
Amount on issue €40 million
Rank Unsecured
Guarantee Guaranteed by Hili Ventures Ltd

                                                                                                                                                                                                                                                                                                                                                                                               

The Guarantor, through its subsidiaries, operates in the following business sectors:

  • Restaurant operations: through its subsidiary Premier Capital plc (“Premier”), the Group is involved in the operations of Mc Donald’s restaurants in Estonia, Greece, Latvia, Lithuania, Malta and Romania
  • IT and Retail operations: through its subsidiary 1923 Investments plc (“1923”), is engaged in retailing of Apple products as an Apple Premium Reseller in Hungry, Poland and Romania
  • Software and payment services: through 1923, primarily providing business solutions and e-commerce systems
  • Logistics and transport services: through Hili Logistics, which was recently acquired by 1923
  • Rental Operations: through its subsidiary Hili Properties, manages a portfolio of properties comprising of both retail and commercial properties in Europe
  • Engineering services: through its subsidiary Motherwell Bridge Industries Ltd (“Motherwell”), provides engineering and maintenance of port handling equipment and crane assembly

The Bond Issue, which is unsecured, is being guaranteed by the Guarantor. It is part of a refinancing and capital expenditure plan that will be used to refinance existing bank facilities and outstanding balances with shareholders as well as to fund capital investment opportunities

Use of Proceeds:

The proceeds from the bond issue, which net of expenses are expected to amount to approximately €39.4 million, will be on-lent to the Guarantor by the Issuer and shall be used for the following purposes:

  • €16.5 million will be used to refinance bank facilities related to Hili Properties and 1923 Investments
  • €13.8 million will be used to refinance an outstanding balance with APM Holdings Ltd, a shareholder of Hili Ventures Ltd
  • €9.1 million to fund capital expenditure plans of the Group

Expected Timetable:

Offer Period

10 July 2018 to 17 July 2018

Commencement of interest on the bonds 24 July 2018
Expected date of admission of securities to listing 31 July 2018
Expected date of commencement of trading in the securities 1 August 2018

More information regarding this bond issue can be found in the Prospectus.