The bond market in 2026

With just a few weeks left until the end of the year, it is the right time to look back at achievements and developments over recent months and possible outcomes during 2026. In terms of new issuance activity across the domestic corporate bond market, 2025 has undoubtedly been a record year with a value of €717 million issued on the Regulated Main Market of the Malta Stock Exchange.

This represents an increase of approximately 65 per cent over the €437 million issued in the previous year and exceeds the prior peak issuance of €470 million recorded in 2022 by more than 50 per cent. The issuance figure for 2025 includes the following bonds which are not yet listed but anticipated to be listed by the end of the year: MedservRegis plc (around €22 million), BOV (€125 million), Central Business Centres (€13.3 million), and CPHCL (€45 million). The latter two issuers have yet to confirm the total amount raised.

Issuance activity was heavily concentrated in the second half of 2025 and this also brought about a lot of media attention on the overall state of the bond market and the specific developments of a number of issuers in view of clear difficulties that were and are still being faced.

Incidentally, Central Business Centres plc, which is currently in the process of raising a further €13.3 million as part of a bond issuance programme of up to €30 million, needed to extend the redemption date on their unlisted €3.25 million zero-coupon bonds due at the end of August 2025 by a few months until 28 February 2026.

This unfortunate development together with the evident challenges of Yacht Lift Malta plc to redeem their €2 million Prospects MTF bond due in mid-September 2025 as well as the specific difficulties at DIZZ Group, MIDI, Mediterranean Maritime Hub (“MMH”) and Shoreline Mall which all have bonds due for redemption in 2026 caused the state of the bond market to become a common topic of conversation across many business circles.

There are €370 million in bonds which are maturing next year. The €65 million pertaining to MedservRegis as well as CPHCL have already been refinanced in recent weeks.

IHI has two bonds that are due to mature in 2026 totalling €115 million. The Financial Analysis Summary of CPHCL published very recently indicates that only €85 million of the €115 million maturing amount will be refinanced.

MIDI has €50 million in bonds maturing in July 2026 against the backdrop of ongoing legal proceedings potentially resulting in the revocation of the emphyteutical concession related to the Manoel Island development project.

Moreover, €15 million in bonds issued by MMH are also due to mature in 2026. MMH has publicly disclosed that alternative financing will be required to redeem the bonds at maturity, following unsuccessful attempts to secure a strategic buyer for the concession. Furthermore, MMH has missed multiple deadlines for the publication of its 2024 financial statements, resulting in the suspension of its bonds from trading on the Malta Stock Exchange. MMH is reportedly still in discussions with a consortium of prospective investors and a “key financial institution” with a view to securing either a capital injection or a refinancing arrangement.

The DIZZ Group has €8 million in bonds maturing in 2026 and is currently also under close scrutiny following the inclusion of a material uncertainty relating to the going-concern status in the 2024 annual financial statements of the guarantor. The company indicated that it initiated a refinancing strategy, which includes securing bank funding for part of its debt and progressing with the disposal of a commercial centre at Tigné Point to meet its upcoming obligations.

Shoreline Mall has a €14 million bond due to mature in 2026. The company is currently involved in a significant legal dispute with its main contractor, Koray Global Malta Ltd, which has resulted in the issuance of a €43 million garnishee order against several entities within the Shoreline Group. Shoreline is actively exploring a range of funding solutions to address the bond maturity.

In addition, Premier Capital plc (€65 million) together with several smaller bond issues are also due to mature during the course of the next 12 months. These include the €12 million bonds issued by Hudson Malta plc, the €15 million bond issued by AX Group plc and the remaining €4.9 million in bonds issued by Plaza Centres plc following a successful bond buyback over recent years. All of these companies should not encounter any difficulties in refinancing or repaying these bonds.

Moreover, also in the fixed-income space, there will continue to be elevated issuance by the Government of Malta again in 2026 since it requires €1.9 billion in new MGS issues to refinance existing debt being matured of almost €1 billion and new borrowings of €0.9 billion to finance the projected deficit. Following the important revelations published in last week’s article on the increased participation of foreign banks in the MGS market and the impact on auction prices, it is highly important to monitor whether the increased reliance on international banks to raise the required amount in MGS’s, will continue throughout the course of next year.

The corporate bond market in 2026 will not only be dominated by the outcome of the various companies seeking refinancing ahead of their redemptions but will very likely maintain a similar strong upward trend in terms of new issuance as many more companies comprehend the benefits of a bond issue to complement their other methods of financing. In this respect, the MFSA ought to understand the urgent need for the publication of a quarterly indicative issuance calendar to provide visibility to market participants and issuers on the timing and volume of new issuance. This will help to avoid too many concurrent issues similar to that experienced over recent weeks.

Within the context of another potentially hectic year ahead for the bond market, the need for financial intermediaries to educate and guide investors correctly to base their investment decision on the true financial strength and soundness of a company issuing a bond and not be simply guided by the interest rate being offered or any security available in the event of a default, becomes even more relevant. 

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article.