On 22 January 2020, the Treasury of Malta announced that the amount of issuance of Malta Government Stocks (“MGS”) during 2020 will not exceed €450 million. The funds raised will be principally used to finance the redemption of six MGS issues which, in aggregate, amount to €461.5 million.
The Treasury explained that it will be issuing three different types of securities – the conventional fixed rate MGS; the floating rate MGS linked to the six-month Euribor which is primarily targeted to institutional investors; as well as Malta Government Retail Savings Bonds similar to the savings bonds issued in the past three years. The Treasury is aiming to spread its issuance programme for 2020 over four to five issues whilst the maturity structure will be a mix of short and medium to long MGS. Full details of the MGS on offer and the respective amounts and maturities will be published one to two weeks prior to each offer.
Meanwhile, the Treasury also explained that it will continue to hold auctions for treasury bills on a weekly basis.