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Malta Government Stock (MGS) Switch Auction – December 2013

The Accountant General announces that the third stage of the three (3) year Malta Government Stock (MGS) Switch Auction Programme will be conducted in December 2013. 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) 3.2% MGS 2019 (V) (the “destination stock”); and
(ii) 3.35% MGS 2020 (IV) (the “destination stock”); or
(iii) any combination of the above two stocks,
in exchange for up to Euro 150,000,000 (nominal) of 5.1% MGS 2014 (III) (the source/retiring stock). 
The switch auction is open to all stockholders of 5.1% MGS 2014 (III).  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 8.30 am on Thursday 5th December 2013 and close at noon on Friday 6th December 2013. The creation and settlement of the new nominal amounts of 3.2% MGS 2019 (V) and/or 3.35% MGS 2020 (IV) will be with effect from Monday 9th December 2013.

Further details on the said MGS exchange/switch operation can be found in the prospectus published in the Government Gazette which can be also downloaded from the Treasury website at www.treasury.gov.mt as from Tuesday 26th November 2013.
CONTACT INFORMATION:
 
Contact Name
Treasury Department
Development House
Level 2 and 3
St. Anne Street
Floriana FRN9010
 
Telephone
(+356) 2596 7100
(+356) 2596 7157
(+356) 2596 7179
 
Fax
(+356) 2596 7203
 
Email
 
Website