On 5 January the Treasury of Malta announced that during 2012 it aims to issue not more than €700 million in Malta Government Stocks (MGS) to finance its borrowing requirements during the year as well as to finance total MGS redemptions amounting to €349.7 million. The Treasury explained that similar to last year it will be issuing two different types of securities – the conventional fixed rates MGS and also Floating rate MGSs linked to the 6-month Euribor.
The Treasury is aiming to spread its issuance programme over 4 issues with a higher concentration during the first quarter of the year. In fact, the first issue is expected to take place in early February 2012 whilst the second is scheduled for late March.
The maturity structure of the 2012 MGS issue programme will be a mix of (i) 5 to 9-year stocks and (ii) stocks with maturities over 10 years. The full details of the stocks on offer and the respective amounts and maturities will be published 1 to 2 weeks prior to each offer.
In the announcement, the Treasury also made reference to the 3-year MGS Switch Auctions Programme launched late last year. In this respect, the Treasury intends to consult with the main market players and stakeholders prior to implementing the second stage of this programme.