Malta Government Stocks - Results of MGS Issues

On 6 August the Treasury announced that it received a total of 3,475 applications for the two new fixed rate Malta Government Stocks for a value exceeding €217.7 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 €50 million and (ii) a new floating-rate stock for a total of €30 million.

The Treasury stated that it allotted a total of €149.2 million (nominal) in the two fixed-rate stocks as follows: €40.1 million in the 3.75% MGS 2015 (VI) FI, €109.1 million in the 5.25% MGS 2030 (I) FI together with €30 million in the Floating Rate MGS 2013 (VI).

Subscriptions from the General Public at the fixed prices established by the Treasury amounted to €92 million split up as follows: €7.1 million in the 3.75% MGS 2015 (VI) FI and €84.9 million in the 5.25% MGS 2030 (I) FI. All these applications were met in full.

Meanwhile €33 million were allotted to institutional investors in the 3.75% MGS 2015 (VI) FI at prices ranging from a high of 103.7% to a cut-off rate of 103.01% compared to a fixed price of 102.5% for the General Public. Other tenders totalling €44.5 million remained unsatisfied despite the fact that almost all bids were pitched at or above the offer price of 102.5%. In the 5.25% MGS 2030 (I) FI, €24.25 million were allotted to institutional investors at prices ranging from 103.12% to 101.85%, with a further €24 million remaining unsatisfied also despite the fact that all bids were pitched at or above the offer price of 100% (par).

In the Floating Rate MGS 2013 (VI), €30 million were allotted to institutional investors with prices ranging from a high of 100.25% to a cut-off rate of 100% (par). The remaining tenders amounting to €20 million, with bids prices all below the par level, were unsuccessful as the amount on offer was fully subscribed.

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