Malta Government Stocks - New Stock Issues

Friday, November 4th, 2011

On 4 November, the Treasury announced the issue of 2 new Malta Government Stocks for a total aggregate amount of €100 million subject to an over-allotment option of up to a further €44 million.

The 2 new stocks are:

  • (i) 4.25% MGS 2017 (III) (Fungibility Issue) at a price to be determined on Thursday 10 November
  • (ii) 5.2% MGS 2031 (I) at a price to be determined on Thursday 10 November

The General Public has the possibility of applying for these stocks in multiples of €100 and up to a maximum of €100,000 (nominal) per application. For applications in excess of €100,000 (nominal), a tendering process applies. Subscriptions open on Monday 14 November and close on Wednesday 16 November for the General Public while tenders in the form of sealed bids will be accepted until noon on Friday 18 November.

The Treasury is also offering €24 million in a new stock linked to the 6-month Euribor. The Floating Rate MGS 2014 (V) is only available for those investors subscribing for a minimum of €250,000 (nominal) and in multiples of €50,000 thereafter. Such applications must be in the form of sealed bids which must be lodged by noon on Friday 18 November. The floating rate is equal to the 6-month EURIBOR plus 45 basis points (0.45%). The actual rate payable will be determined 2 working days prior to the respective interest payment dates on 23 May and 23 November each year. The EURIBOR, or Euro Interbank Offered Rate, is the rate at which euro interbank term deposits are being offered by one prime bank to another within the European Monetary Union.

Further information is available in the Prospectuses dated 4 November 2011 issued by the Government of Malta. Pricing details will be announced on our website on Thursday 10 November. For any clarifications, please send an email to info@rizzofarrugia.com or contact us on +356 2258 3000.

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