Malta Government Stocks - New Stock Issues

On 30 October, the Treasury announced the issue of 3 new Malta Government Stocks for a total aggregate amount of €80 million subject to an over-allotment option of up to a further €20 million.

Proceeds from the issue will be used for general funding purposes of the Government of Malta.

The 3 new stocks are:

(i) 3.6% MGS 2013 (IV) (Fungible Issue) at a price to be determined on Thursday 5 November

(ii) 4.6% MGS 2020 (II) at a price to be determined on Thursday 5 November

(iii) Floating Rate% MGS 2015 (V) available BY TENDER ONLY SUBJECT TO A MINIMUM OF €250,000

The General Public has the possibility of applying in the first two issues (the fixed-rate stocks) in multiples of a €100 and up to a maximum of €100,000 (nominal) per application. For applications in excess of €100,000 (nominal) in respect of the first two issues, a tendering process applies. Subscriptions open on Monday 9 November and close on Wednesday 11 November for the General Public while tenders in the form of sealed bids will be accepted until noon on Friday 13 November.

The Floating Rate MGS 2015 (V) is only applicable 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 13 November. The floating rate is equal to the 6-month EURIBOR plus 80 basis points (0.8%). The actual rate payable will be determined 3 working days prior to the respective interest payment dates on 25 April and 25 October each year. The rate on this 6-year MGS is subject to a minimum of 1.7% and a maximum of 5.22% per annum. 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.

Prospective investors should read the Prospectus dated 27 October 2009 issued by the Government of Malta. Investors interested in applying for any of the Malta Government Stock Issues are kindly requested to complete an Authorisation to Apply Form. Pricing details will be announced on our website on Thursday 5 November. For further information please send us an email on trading@rizzofarrugia.com or contact us on +356 2258 3000.

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