Malta Government Stock (MGS) Switch Auction – December 2012
The Accountant General announced that the second stage of the three year Malta Government Stock (MGS) Switch Auction Programme will be conducted in December. The Programme is part of Treasury’s issuance strategy for lengthening and smoothening the interest and redemption profile of the existing MGSs debt portfolio and also, to some extent, to provide an opportunity for institutional investors to diversify the maturity of their bond portfolios.
In this regard, the Treasury shall be issuing by auction on a bid-price basis the following Malta Government Stocks:
(i) 3.75% MGS 2017 (IV) Fungible Issue (the destination stock); and a new
(ii) 3.85% MGS 2018 (V) (the “destination stock”); or
(iii) any combination of the above two stocks, in exchange for up to €150,000,000 (nominal) of 3.60% MGS 2013 (IV) (the source/retiring stock).
The switch auction is open to all stockholders of 3.6% MGS 2013 (IV). The applications shall be in the form of sealed bids for a minimum and multiples of €500,000 (nominal) each. In the case of applications in the name of ‘nominee and/or clients account’, the sealed bids shall be for a minimum amount of €250,000 (nominal) or more each. Applications shall open at 08;30h on December 10 and close at 14:00h on December11.
The creation and settlement of the new nominal amounts of 3.85% MGS 2018 (V) and/or 3.75% MGS 2017 (IV) Fungible Issue will be with effect from December 12.