db Group seeks to raise €60 million in bonds over next year

db Group, a leading player in the hospitality industry, will be raising €60 million in separate bond issues over the next 12 months, the company announced.

The company will issue its first bond for €33 million in the coming days and another €27 million in 2026. They will be first offered to around 1,700 existing bond holders and institutional investors.  The bonds will carry a coupon of 5.2% and will mature in 2031.

The first tranche is expected to be admitted to the Malta Stock Exchange with effect from 12 November 2025 and trading is expected to commence the day after. The minimum subscription amount shall be €2,000 per application.

The group said proceeds from the €33 million bond issue will be used to repay several inter-company loans. Approximately €7 million shall be on-lent to db Porto Hotel Limited, which will go towards the full repayment of an existing inter-company loan linked to the acquisition of the Xemxija Bay Hotel. Another €20 million shall be on-lent to db San Gorg Property Limited to repay an existing inter-company loan in connection with the development of the St George’s Bay project. Approximately €5.4 million shall be utilised for general corporate funding purposes.

The announcement comes hot on the heels of the group’s recent opening of its Japanese restaurant Aki in London, which is the first overseas investment to come to fruition.

Meanwhile, db Group recently announced that HR Hotel FZ LLC, its joint venture with RAK Hospitality Holding, operators of the Hard Rock franchise, will be investing in a mixed-use development in Ras Al Khaimah, the United Arab Emirates. This project, situated on Marjan Beach, is slated to open in 2028 and will include approximately 300 hotel rooms and 400 branded residences.

In Malta, the company said work on db Group’s flagship project at St George’s Bay is on schedule. The project includes the five-star Hard Rock Hotel Malta, St George’s Mall and the luxury ORA Residences situated in the two towers.

The db Group’s audited accounts for the year ending March 2025 show that the group’s net asset value rose by almost 15% from the previous year, from €211 million to €241 million. Adjusted EBITDA increased by 15% to €35.8 million, and net profit from operations surged by 30% to €18.6 million.

Group CEO Robert Debono said the group’s performance confirmed the strength of its business model.

“Even as we expand internationally, we remain firmly committed to disciplined financial management and long-term value creation. These results give us the confidence to pursue bold projects abroad while continuing to deliver consistent returns in Malta. Our focus remains clear: sustainable growth, world-class partnerships, and lasting value for those who invest with us,” he said.