Malta Government Stocks - Results of MGS Issues

Friday, November 2nd, 2012

On 2 November, the Treasury announced that it received a total of 5,256 applications for the three new Malta Government Stocks  for a value exceeding €252.9 million (nominal). The Treasury had offered a total of €100 million with the option of increasing the aggregate amount by a maximum amount of an additional €40 million.

The Treasury stated that it allotted just below €140 million (nominal) in the three fixed-rate stocks as follows: €3.8 million in the 3.75% MGS 2017 (IV) FI; €29.2 million in the 4.3% MGS 2022 (II) FI  and €107 million in the 4.8% MGS 2028 (I).

Subscriptions from retail investors at the fixed prices established by the Treasury amounted to €120.79 million (nominal) split up as follows: €2.4 million (nominal) in the 3.75% MGS 2017 (IV) FI, €21.4 million (nominal) in the 4.3% MGS 2022 (II) FI and €97 million (nominal) in the 4.8% MGS 2028 (I). All these applications were met in full.

Given the high take up of the amount on offer by the general public, under €20 million was available for the auction process but the various institutions placed tenders amounting to €132.2 million. The statistics published by the Treasury indicate that €1.4 million were allotted to institutional investors in the 3.75% MGS 2017 (IV) FI at 105.34% compared to the fixed price for the General Public of 105%. A further €43 million remained unsatisfied at prices ranging from 105.23% to 103.87%. In the 4.3% MGS 2022 (II) FI, out of the €45 million tendered, only €7.8 million were allotted to institutional investors at the a price of 102.91% representing a 41 basis points premium to the fixed-offer price for the General Public of 102.50%. Meanwhile, in the 4.8% MGS 2028 (I), the Treasury allotted €10 million to institutional investors at prices ranging from 101.78% to 100.90%, with a further €32.8 million remaining unsatisfied despite being lodged at or above the offer price of 100.75%.

 

Download a copy of the November 2012 – Malta Government Stock Issues Statistics issued by the Treasury of Malta.

 

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