Capital markets – an alternative for financing company growth

Nowadays companies have various alternatives when it comes to raising capital to finance their growth and expansion. The Sunday Times of Malta caught up with Nick Calamatta, Co-CEO of Calamatta Cuschieri, and Darin Pace, Head of Capital Markets of the firm, who gave an overview of the pivotal role of capital markets in Malta’s growing economy.

What is the role of capital markets in Malta’s economy?

Nick Calamatta (NC): Capital markets have been around since 1992, when the Malta Stock Exchange was set up, and the country has seen a steady growth of such instruments over the last 27 years. More recently, the fast-paced growth of the Maltese economy coupled with a number of property developments have brought about an increase in the use of capital markets for the financing of such growth in the private sector.

Darin Pace (DP): The primary role of capital markets is to match the needs of organisations seeking funding with the needs of investors that have excess supply of capital ready to invest. In a growing economy you need efficient capital markets, and this was also highlighted by the European Union with the Capital Markets Union Action Plan. We have seen several local companies...