Curmi & Partners

Malta Government Securities - Annual Borrowing Plan 2018

The maximum amount of issuance set not to exceed €350 million.

Purpose of issuance:

It is planned that the funds raised from the borrowing programme shall be applied mainly to finance the Central Government borrowing requirements for 2018 including:

1) The redemption of 7 MGS issues amounting to € 391,007,321 which are due to mature as hereunder:

    • 18th April 2018 3.85% MGS 2018 (V) € 121,431,000
    • 15th July 2018 7.8% MGS 2018 (I) € 163,057,021
    • 5th September 2018 FRN MGS 2018 (IV) € 31,400,000
    • 25th September 2018 FRN MGS 2018 (VI) € 38,950,000
    • 12th December 2018 FRN MGS 2018 (VII) € 29,300,000,
    • 7% MGS 2018 (II) € 326,700(Ex-Church Property Stocks redeemable between Jan-Dec 18)
    • 7% MGS 2018 (III) € 6,542,600(Ex-Church Property Stocks redeemable between Jan-Dec 18);

2) Financing of Central Government deficit estimated at €21.4 million; and

3) Effecting changes in the Central Government debt portfolio, as and when required, in line with the Government’s debt management policies.

Types of Securities and Debt Instruments to be issued:

The issuance programme will be covered by the issue of three different types of securities/debt instruments:

1) The conventional fixed rate MGS - which will be the Treasury’s primary financial instrument by which to fund the  central government borrowing requirements during the year 2018

2) The Floating Rate MGS linked to the six month Euribor - via the auction system for institutional investors; and

3) Malta Government Retail Savings Bond - which will be similair to the savings bonds issued in 2017

Frequency of issuance

The Treasury intends to fund the financing requirements for 2018 over 3 to 4 issues. As part of its issuance strategy, the Treasury shall retain the flexibility and capability to adapt quickly to changing market and other conditions and, where necessary will review the type of debt securities/debt instruments to be issued as well as the intervals of issuances.

Maturity and terms of issuance of Malta Government Stocks

The maturity structure of the 2018 MGS issues will be a mix of short and medium to long term MGS and the exact maturity and details on whether the offer will be for a new stock or a re-opening of an existing MGS will be announced 1 to 2 weeks prior to the opening of each issuance.

Full Notice here