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New Malta Government Stocks Issue February 2013

NEW MALTA GOVERMENT STOCK OCTOBER 2012

The Treasury has just announced details of the new MGS issues. The Government of Malta will be issuing the following fixed rate Malta Government Stocks authorised under the Local Loans (Registered Stock and Securities) Ordinance, Cap.161:

  • 3% Malta Government Stock 2019 (III) at Euro 100.50 – YTM of 2.915% which corresponds to an annualised rate of 2.937% and
  • 4.5% Malta Government Stock 2028 (II) YTM of 4.500% which corresponds to an annualised rate of 4.550% or
  • any combination of the above two Stocks which shall in the aggregate be Euro 120,000,000 subject to an over-allotment  option of Euro 80,000,000 in the event of over-subscription.

Calamatta Cuschieri research note is available here.

An Application Form is available here.

The Prospectus is available here.

Additional Information – Collective Action Clauses (“CAC”s)

It is noted that these new stocks will include Collective Action Clauses (“CAC”s). In accordance with Paragraph 3 of Article 12 of the European Stability Mechanism (“ESM”) Treaty relating to all new euro area government securities with maturity above one year issued as from 1st January 2013, the inclusion of model CAC has become mandatory. In this respect, the Accountant General may consider and approve modifications of borrowing terms and conditions of the issue. In a „reserved matter‟ modification, which would involve the amendment of the most important terms and conditions (including reductions in the principal or interest and changes in dates payable), modifications would require the affirmative vote of stockholders of not less than 75% of the aggregate principal amount of outstanding stock.

Applications for the general public open on Monday 25th February, 2013 at 8.30 a.m. and close on Wednesday 27th February, 2013.

  • 3% Malta Government Stock 2019 (III) r – (For applications submitted by members of the public – maximum € 100,000- Issue date 1st March, 2013 – 1st pro rata interest payment covering period from the 1st March, 2013 to the 21st September, 2013 (both dates inclusive) will be made on the 22nd September, 2013 @ 1.674033%)
  • 4.5% Malta Government Stock 2028 (II) r – (For applications submitted by members of the public – maximum € 100,000- Issue date 1st March, 2013 – 1st pro rata interest payment covering period from the 1st March, 2013 to the 24th April, 2013 (both dates inclusive) will be made on the 25th April, 2013 @ 0.679945%)

The General Public has the possibility of applying in these new issues in multiples of EUR100 and up to a maximum of EUR100,000 (nominal) per application. For applications in excess of EUR100,000 (nominal) a tendering process applies and sealed bids will be accepted until noon on Friday 1st March, 2013.

Investors interested in applying in any of the Malta Government Stock issues are kindly requested to complete Application Forms and submit them to our office by Wednesday 27st February 2013 at 15:00.

Should you require any further information please do not hesitate to contact us.