Malta Government Stocks - Results of MGS Switch Auction

Wednesday, December 7th, 2011

On 6 December, the Treasury published the statistics with respect to the first MGS Switch Auction comprising the voluntary exchange of the 5.7% MGS 2012 (III) into the new 4.3% MGS 2016 (IV). The Treasury received 21 bids to exchange a total of €214.9 million (nominal) of the 5.7% MGS 2012 (III).

The Treasury accepted to exchange €159.9 million of such tenders. The bid prices for the new 4.3% MGS 2016 (IV) ranged from a high of 105.25% (giving a yield to maturity of 3.0888%) to the cut-off price of 103.05% (giving a yield to maturity of 3.587%).

A total of €158.1 million (nominal) of the new 4.3% MGS 2016 (IV) will be allotted to the successful bidders. The Treasury will cancel the €159.9 million (nominal) of the 5.7% MGS 2012 (III) that were accepted for this switch thereby reducing the total amount outstanding of this stock to €268.9 million (nominal).

The Malta Stock Exchange has not yet announced the commencement date for trading of the new stock as well as the lifting of the trading suspension of the 5.7% MGS 2012 (III).

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