NEWS | Tuesday, 31 October 2007

Corinthia to issue bond to finance Libya project

The local Borza is once again experiencing a flurry of trade by investors with a lot of equities registering a high turnover.
Corinthia is planning to issue a bond of around 15 million Euros to part finance its latest village development in Libya.
Observers note that the expected coupon rate will be high to partly satisfy the fact that the funds will be used in Libya. Although this country is gearing up to development and befriending the Western World, its democratic credentials as established by investors would make this country a high-risk state which implies a higher coupon than that normally associated with politically stable countries.
In the past, Corinthia has issued other Eurobonds to finance their property and hotel developments in Europe. This time the amount of the bond is quite substantial and should find favour with the domestic investment community that is always yearning to invest in diverse opportunities.
The Palm City project in Libya consists of luxurious apartments and is aimed to offer secure accommodation for high net worth expatriates that live and work in Libya.