The Sunborn Hotel Gibraltar has issued a 58 million Euro bond with Norwegian investment bank DNB Markets and, in announcing the move, confirmed it has now fully repaid a development loan from Credit Finance Company Limited.
Despite Brexit uncertainty the bond issue was “highly successful and fully subscribed”, according to the company’s Executive Director Hans Niemi, who said it had attracted international interest from institutional investors in the UK and Scandinavia.
Mr Niemi said the bond issue strengthened the company’s financial position and would enable a “performance and expansion driven strategy” going forward.
The bond will be listed on Nasdaq Stockholm and follows the successful bond issue of Sunborn London, listed on Nasdaq Helsinki.
Mr Niemi would not be drawn on the size of the loan from the Credit Finance or on the interest paid by the company.
But he said it had been “pivotal” to enable the company to set up in Gibraltar, adding that securing such a loan “wouldn’t have been possible in the open market” at the time.
“It has now been full repaid,” he said.
“Our business in Gibraltar is now stabilised and growing.”
The Gibraltar Government, which owns Credit Finance, has also declined to provide details of the loan, citing commercial confidentiality.
Gibraltar law firm Hassans acted for Sunborn Gibraltar on the issuing of the bond.
Javier Chincotta, Hassans’ managing partner, said: “This type of work is rarely seen led from Gibraltar.”
“It is an excellent demonstration of Hassans’ international expertise that this work has been retained in Gibraltar.”
Since its inception in 2014, the Sunborn hotel has seen business levels increase more than 20% year over year, according to the company.
The Sunborn Gibraltar hotel has been awarded five star status according to the AA Quality Standards and is welcoming over 300,000 guests annually, whether in the hotel, restaurants, bars, spa or casino, it said.
Sunborn Group currently owns two super yacht properties, Sunborn Gibraltar and Sunborn London, and has implemented an expansion plan with locations in several other major cities in the Americas, Asia and Europe.
Sunborn is a 45-year old, privately-owned business headquartered in Finland which develops and operates luxury spa and yacht hotels, restaurants and other high-quality businesses located in Finland, Denmark, United Kingdom, Germany, Malaysia and Gibraltar.