The Maltese Herald is still conducting a deep analysis of the finances of MIDI. However, at a first glance of their annual report of 2023, MIDI clearly doesn’t have the cash to go ahead with the project at Manoel Island. MIDI can only finance its project at Manoel Island if it takes new bank loans or issues new bonds.
According to its annual report of 2023, MIDI only had up to €5.5 million in cash available, and additional €22 million was estimated as future revenue from apartment sales in Tigne Point. However, MIDI, by its own estimates, needs up to €300 million to complete its project at Manoel Island and according to its own records, it has only spent up to €20 million on the project so far. These expenses include the contractual obligations to restore historic sites in Manoel Island.
MIDI is also heavily indebted with a debt to equity ratio of more than 1:5 and its whole business is based on massive amounts of debt.
In 2020, MIDI used the proceeds from the €45 million bond issue in 2020 primarily to pay back up to €40 million it issued in bonds in 2016. It only used the rest of €5 million it collected from its bond issue for its projects which partly even went to recurrent expenditure. Now, MIDI needs to pay back the 2020 bond-holders in 2027 and doesn’t have the cash to do so. It needs to keep selling apartments in Tigne Point to finance its massive debts.
MIDI also has up to €13 million in debt over another project and is declaring up to €15 million in lease liabilities.
MIDI likes to project itself as a big company implementing big real-estate projects. By the standards of the world of big real-estate, MIDI is actually a small company that is currently running on multiple debts just to survive.
MIDI is listed in the Malta Stock Exchange and is currently valued at around €52.68 million.
You can download their 2023 annual report here.
Website Editor
Historian and Publisher
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