The Finance Minister, Professor Edward Scicluna has announced the fourth 62+ bond issue for elderly persons. The bond amount will be €60 million, however, the Minister said that if the demand is greater the issue will be raised to €95 million. The bond with a 3% interest rate closes in 2025.
This bond is going to be issued on very similar terms and conditions to previous issuances of the 62+ Savings Bond issues held in the past three (3) years and shall include the following main features:
- Rate of interest of 3% per annum fixed for five (5) years until the maturity of the bond in 2025;
- Every eligible individual can apply in his or her sole name for a minimum amount of €500 up to a maximum of €10,000;
- Interest is paid semi-annually in arrears;
- The bond is not negotiable and cannot be transferred onto another individual;
- Early repayment of principal is subject to a penalty equivalent to three months’ interest.
Amount on issue
The amount on issue shall be €60,000,000 and may be increased by an additional maximum amount of €35,000,000, in the event of oversubscription. The issue of the 62+ Malta Government Savings Bond of this year shall be open to all individuals born in the year 1958 or before.
Who can apply
All individuals born during the year 1958 or before who shall be classified in two categories as follows:
- New applicants
- Existing holders of the 62+ MGSB
Only EU citizens residing in an EU country and UK nationals residing in the United Kingdom or in an EU country are eligible to apply for this bond, no applications under nominee accounts.
Public Offer Period – Dates and Time
Applications will close at 5:00 p.m. on Thursday 15th July 2020, or earlier at the discretion of the Accountant General.
Allotment Policy – Preference is given to new applicants
Similar to previous issuances of the 62+ MGSB, preference will be given to new eligible applicants (Category ‘A’) made up of (i) individuals born in 1958 and (ii) individuals born before 1st January 1958 who were eligible to apply in past issuances but did not apply. After the bonds are allotted to these new applicants, the remaining portion available for allocation will be allocated among applicants who already participated in any of the previous issuance of the 62+MGSB and whose name appeared on the register at the close of business of 5th June 2020 (Category ‘B’), (the cut-off date), in accordance with the discretion of the Accountant General.
Contact us today on +356 25 688 888, via email on [email protected] or through your financial advisor. You can also show interest for the Malta Government Savings Bond by applying below:
Calamatta Cuschieri Investment Services Ltd is licensed to conduct investment services business under the Investments Services Act by the Malta Financial Services Authority and is a founding member firm of the Malta Stock Exchange.