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Selected Projects
Description of work on selected projects:
| Title of Project | : | Central Slaughterhouse Board Financing |
| Contracting Authority | : | Central Slaughterhouse Board |
The Central Slaughterhouse Board was appointed by the government of the Republic of Cyprus with the mission to set-up, regulate and operate modern, centralised abattoirs, whilst financing the development of such slaughterhouses through trade finance, bank facilities and loan capital.
The Cyprus Investment and Securities Corporation Limited (CISCO) was appointed as the sole advisor to the CSL Board, to raise, underwrite and manage, the CYP £2 mln. loan capital with sinking fund provision, required for the construction, purchase of equipment and operation of a new central slaughterhouse in Kofinou.
This was a landmark transaction for Cyprus, since it was the first time a semi-governmental organisation retained the services of a specialised financial services firm to raise loan capital from the public, and the first time a private financial services firm was mandated to underwrite a bond issue of a public-sector body.
Following the extreme success of this transaction in 1985, CISCO was re-appointed in 1997 and 1999 to re-issue loan capital stock with similar covenants on the maturity of previous issues, whilst maintaining its role in providing registry and trustee services for these issues.
In the initial transaction the team of CISCO professionals undertook the study and layout of a prospectus / offer document, terms of issue and underwriting terms with the contracting authority's retained lawyers, since no specified format and regulating authority for the public issue of bonds existed at the time of this landmark transaction.
Project Transactions
8½% Guaranteed Debenture Loan Capital Stock 1991/1992 CYP £2.000.000
8½% Guaranteed Debenture Loan Capital Stock 1998/1999 CYP £2.000.000
7¾% Guaranteed Debenture Loan Capital Stock 2005/2006 CYP £2.000.000
| Title of Project | : | European Investment Bank Risk Capital Scheme |
| Contracting Authority | : | European Investment Bank |
The European Investment Bank initiated a Global Loan on risk capital resources, to the value of ECU 4 mln. to be subscribed directly to the share capital of competitive Cypriot Enterprises in the productive sector, particularly of those associated with firms of the EEC.
The Cyprus Investment and Securities Corporation Limited (CISCO) was retained by the EIB as a financial intermediary in Cyprus with the mandate of:
- identifying suitable investment opportunities;
- working with the candidate firms to produce a business plan and establish their financial needs;
- present candidate firms to the EIB for funding;
- allocate funds to the beneficiary firms;
- monitor and report the progress of the investments to the EIB on a regular basis.
CISCO promoted projects for fund allocation under the above scheme in the:
- Furniture Industry: work undertaken concerned the restructuring of operations, advice on the relocation and redeployment of production activities overseas and financing of capital expenditure.
- Electromechanical Sector: the project involved the management restructuring, formulation of a business plan, and the financing of an electrical and mechanical engineering company.
- Communication Services for the tourist industry: work undertaken concerned the feasibility study and structuring of a financing plan of a company which would operate facility management services to local companies and the provision of an international computer reservation system (CRS) for hotel bookings, providing a real-time information link between travel agents and hotels worldwide.
The total funds allocated to Cypriot firms by the EIB through CISCO totalled
ECU 810.298.
| Title of Project | : | Aphrodite Hills |
| Contracting Authority | : | Lanitis Development Limited |
Lanitis Development Limited is developing “Aphodite Hills”, an integrated resort community on the south-west coast of Cyprus. Over a 2,3 mln m2 area a number of sub-projects have been developed or are currently under development the most notable of which are: (a) a 290-room 5-star hotel with conference & banqueting facilities to be managed and co-owned by Inter-Continental Hotels, (b) 143 timeshare units comprising studio & 1/2/3 bedroom units, (c) the design, development & sale of 209 luxurius villas, (d) the sale of villa plots, (e) the design, development and operation of Golf Course & Clubhouse, Tennis Academy / Health Spa, (f) the design, development, marketing and sale of a Village Square to include shops, services, restaurants, & other amenities.
The Cyprus Investment and Securities Corporation Limited (CISCO) was commissioned by Lanitis Development in the initial stages of this unprecedented project for Cyprus and retained as its main financial advisor to:
- conduct a feasibility study for the project, working in a team of other consultants (Accountants, Lawyers, Marketing firms, Collaborators/partners of various sub-projects);
- design, structure, review and adapt a flexible legal and share capital structure,
- assist in the financial syndication, arranging for the raising of debt and equity;
- assess and determine on an ongoing basis the financial needs.
Following the successful financing arrangements, CISCO proceeded with the submission of the application to listing on the Cyprus Stock Exchange, acting as the lead manager. The Company is the first such Company aiming to be admitted to the CSE classified as a 'Large Project Financing Company'.
The total financing needs of the project and its various sub-projects stand at around CYP £125m comprising of equity and debt finance.
| Title of Project(s) | : | IPO of Louis Cruise Lines
Secondary equity offering of Louis Cruise Lines
Louis Catering Corporate Bond
Louis Hotels Equity Offering & Listing |
| Contracting Authority | : | Louis Group |
- CISCO was actively involved in the structuring of the Louis Group with a view to its listing on the Cyprus Stock Exchange. The task involved:
- Valuation of 8 shipping companies, 1 ship management company and 1 duty-free shop company.
- Merging of the above companies to form one Group under a holding company – Louis Cruise Lines.
- Lead Managing the flotation (co-ordination of all professional consultants, formation of underwriting syndicate, advise on advertising campaign and application procedure).
- Building the book leading to the private placement prior to the IPO.
- Preparation of Prospectus/Listing Particulars and other required documents
- Lead underwriting the issue.
The issue of £20m in 1999 was considered the largest at the time in the history of IPOs in Cyprus.
- CISCO maintained a close relationship with the Group and assisted in a secondary equity issue of £24,5m.
- Moreover, it offered its services to Louis Catering regarding the issue and placing of a £10m Corporate Bond.
- A similar advisory role was undertaken on Louis Hotels, a leading group of hotel companies in Cyprus and Greece. Louis Hotels has filed an application to listing on the CSE.
| Title of Project | : | Secondary Equity Offering of Cyprus Airways
Bid for majority stake in "New Olympic Airways" |
| Contracting Authority | : | Cyprus Airways |
- Cyprus Airways was called to comply with CSE requirements as to the maximum percentage allowed to be held by its major shareholder, the Government of Cyprus.
CISCO has undertaken:
- Consultancy role as to its capital structure, ways of achieving higher public float, assessment of financial instruments, pricing and placing of new shares.
- Preparation of Prospectus/Listing Particulars and all other documents.
- Lead managing the process and co-ordinating all professional consultants involved.
- Advisory role to the Cyprus Government and intermediation leading to the successful placing of the nil-paid rights.
Due to the high level of professionalism exhibited and the continued relationship with the national carrier, CISCO was selected together with Alpha Finance as members of the team vested with the responsibility of advising Cyprus Airways on the Project of acquiring a majority stakeholding in “New Olympic Airways”.
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