About Malta Government Stocks
Malta Government Stocks (MGSs) are interest-bearing securities with maturities over 1 year that pay interest on a semi-annual basis. The Malta Government Stocks are listed and traded on the Malta Stock Exchange.
Conventional fixed rate Malta Government Stocks are the main financial instrument by which central government meets its borrowing requirement for the year. Actually, the Malta Government Stocks make up the core securities of Central Government debt portfolio.
In November 2009, the Treasury offered for the first time a structured financial debt security in the form of a medium-term Floating Rate MGS (FRN) linked to the six-month Euribor plus a fixed spread.
Mechanism for Issuance
On a yearly basis, before initiating the process to issue Government Stock covering the financing programme for the year, the Treasury (including the DMO) holds close consultations with the Central Bank of Malta in its preparatory work for the submission to the Ministry of Finance of a proposal outlining the overall issuance strategy for the year.
Recommendations are then referred to the consideration of the Public Debt Management Advisory Committee (PDMAC) which is to provide advice to the Minister of Finance on the recommended strategy prior to the Minister’s approval.
An indicative issuance calendar of MGS is published in early January of each year by the Treasury via a Press Release issued by the Department of Information. Such indicative calendar outlines the Government’s borrowing requirements for the year, the main purpose for government’s borrowing, the planned series of MGS issues, and the frequency and maturity structure of the issuance of Malta Government Stocks (MGSs) for the current financial year. The 2014 indicative issuance calendar was issued on 9th January 2014.
The public issue is open to all types of investors including the retail sector. The Treasury publishes the prospectus of each issue of Malta Government Stocks (MGS) in the Government Gazette normally ten days before issue.
The retail sector participates at pre-announced fixed price whilst the wholesale/institutional investors participate in a competitive multiple price Dutch auction. The prices for the retail sector are announced by way of a press release issued by the Department of Information (DOI) five (5) days before the opening of applications.
Applications on the prescribed application form may be downloaded from the Treasury's website or obtained and lodged at all Members of the Malta Stock Exchange and other authorized Investment Service Providers licensed by Malta Financial Service Authority. The members of the public can buy up to €100,000 per person in units of €100 in each Stock.
Applications for wholesale amount should be in excess of Euro 100,000 and are subject to bids on the prescribed forms. Such forms are to be deposited in the Treasury Tender Box or transmitted to Treasury by fax or by e-mail in the e-mail addresses indicated on the auction forms. The results of the auction are announced within two hours after the closing time of the auction.
Until now there is no primary dealer system in Malta.
MGS: Issuance Results
for MGS: Issuance Results.