Malta Government Stocks - Results of MGS Issues

Friday, November 18th, 2011

On 18 November the Treasury announced that it received a total of 5,525 applications for the two new fixed rate Malta Government Stocks for a value exceeding €295 million. The Treasury had announced the issue of: (i) two fixed-rate stocks for a total of €100 million with the option of increasing the aggregate amount up to an additional €44 million and (ii) a new floating-rate stock for a total of €24 million.

The Treasury stated that it allotted a total of €143.99 million (nominal) in the two fixed-rate stocks as follows: €19.1 million in the 4.25% MGS 2017 (III) FI and €124.9 million in the 5.2% MGS 2031 (I). Moreover, the Treasury revealed that it also allotted the €24 million in the Floating Rate MGS 2014 (V) after it received bids totalling €44.5 million.

Subscriptions from the General Public at the fixed prices established by the Treasury amounted to €134.1 million split up as follows: €16.1 million in the 4.25% MGS 2017 (III) FI and €118 million in the 5.2% MGS 2031 (I). All these applications were met in full.

Meanwhile €3 million were allotted to institutional investors in the 4.25% MGS 2017 (III) FI at prices ranging from a high of 105.11% to a cut-off rate of 104.82% compared to a fixed price of 103.75% for the General Public. Other tenders totalling €88.4 million remained unsatisfied despite the fact that most of these bids were pitched at or above the offer price of 103.75%. In the 5.2% MGS 2031 (I), €6.9 million were allotted to institutional investors at prices ranging from 103.90% to 102.64%, with a further €62.7 million remaining unsatisfied. Also in this case, most of the unsuccessful bids were pitched at or above the offer price of 100.75%.

In the Floating Rate MGS 2013 (VII), €24 million were allotted to institutional investors with prices ranging from a high of 100.31% to a cut-off rate of 100.25%. The remaining tenders amounting to €20.5 million were unsuccessful as the amount on offer was fully subscribed.

Download a copy of the November 2011 Malta Government Stock Issues Statistics issued by the Treasury of Malta

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