Malta's appetite for fixed income securities remains strong in 2025, with local investors channelling over €1 billion into new bond issues by both the public and private sectors.

Far from showing signs of fatigue, demand for bonds continues to outpace supply, offering attractive opportunities for issuers – both domestic and international – looking to raise debt.

In just the past two months, companies have raised more than €238.8 million through corporate bond issues, while the Government has secured a further €388 million via Malta Government Stocks. These figures highlight the deep pool of liquidity available in the local market, backed by a record €27 billion in resident deposits held with Maltese banks.

A standout example is Bank of Valletta (BOV), Malta’s largest bank, which issued a €150 million bond in June – the largest in local market history, oversubscribed in under a week. This follows the bank’s €100 million bond in October 2024, underscoring investors’ confidence in the bank, which enables it to attract strong demand.

While BOV’s performance reflects its well-established brand and market presence, the success of other recent entrants may serve as a more instructive case study for foreign firms seeking to raise funding from the Maltese capital market.

In June, Golden Triangle and MM Star Malta raised €42 million and €35 million, respectively, with both offerings focused on hospitality developments abroad: Beverly Hills in the case of Golden Triangle, and Edinburgh for MM Star Malta.

Crucially, both projects involved individuals well known to Maltese investors.

Golden Triangle is a joint venture between IHI, the firm behind the locally grown international hotel brand Corinthia, and Kuwait’s Action Group, while Maltese hospitality entrepreneur Winston J. Zahra serves as executive director at MM Star Malta, the Maltese arm of Millemont Capital Partners, a private equity real estate investment platform with a focus on acquiring sustainable hospitality assets.

The involvement of names familiar to Maltese investors can be seen a key plank in these firms’ financing strategy by capitalising on trust built over decades of success.

Maltese investors are willing to fund international ventures, provided there is a strong local connection or trusted pedigree. This was also the case with Global Ports Holding, the world’s largest independent cruise port operator, which once again tapped the local corporate bond market this year, raising €15 million following the €18.1 million in debt securities issued in 2023. Although not a household name in Malta, its majority stake in Valletta Cruise Port has given Global Ports Holding a certain degree of familiarity amongst investors.

The ongoing momentum in the corporate bond market is even more notable when viewed alongside the Government’s robust issuance schedule – raising around €850 million in Malta Government Stocks so far in 2025. While this figures includes some participation from international investors, including foreign banks, the majority was financed by local investors.

That corporate bonds continue to attract significant capital in parallel suggests that investors are not merely seeking the safety of sovereign securities, but are also actively pursuing yield through diversified fixed income opportunities.

The robust demand for corporate bonds, even as government bond activity surges, shows that the Maltese bond market’s appetite for fixed income securities remains very much active. Recent issues, such as those by Golden Triangle and MM Star Malta, provide a clear template – and foreign firms seeking to raise funds should take note.