On Tuesday 16 November the Treasury published the results of the recent Malta Government Stock issues. Herewith an analysis of the applications and tenders received by the Treasury.
Lm19 million 5.9% MGS 2009 (III) at minimum tender price of 107.80% (yield to maturity of 3.95% per annum)
Total demand in the short-term paper amounted to Lm50.95 million spread across 42 tenders.
Only 19 tenders were successful, with the highest bid at 109.20% (yield to maturity of 3.6% per annum) and the lowest accepted bid at 108.50% (yield to maturity of 3.77% per annum). Lm15.2 million of the successful tenders were by credit institutions with the balance mostly allotted to collective investment schemes.
An analysis of the unsuccessful tenders (23 in total) reveals that there were bids for Lm18.3 million nominal by credit institutions, Lm12.5 million nominal by collective investment schemes, Lm1.05 million by insurance companies and Lm100,000 nominal by private individuals.
Lm10.5 million 5.1% MGS 2022 at par
Total demand for the 18-year paper reached Lm25.25 million. Since applications by the general public at par amounted to nearly Lm13 million, all the tenders at the auction stage were not considered. Moreover, due to the over-subscription at par, refund cheques on a pro-rata basis will be issued by the Treasury to all successful applicants.
Notwithstanding the fact that no tenders for this stock were successful, the Treasury provided an analysis of the various bids. There were a total of 12 tenders for Lm12.25 million at a weighted average price of 97.6545%, i.e. below par value. This translates into a weighted average yield of 5.3% per annum. There were 3 bids by credit institutions totalling Lm6 million nominal, 6 bids by collective investment schemes for Lm4.5 million nominal and 3 tenders by insurance companies for a value of Lm1.75 million.