Indicative calendar of government securities issued

- Lm49 million in government securities to be released this year

With a view to enhancing the transparency of the government securities market, the government has once again published an indicative calendar of the annual programme of issues of government securities.

The calendar assists investors to gain a better insight into what investment opportunities will be available over the course of the year, while also helping other prospective issuers to plan the timing of their issues so as to avoid undue pressures on the local market.

This year two government stocks worth a total of Lm48,900,200 mature, on the Lm28,067,000 7% MGS 2003 (Church) on 21 February and the Lm20,833,200 7% MGS 2003 (II) on 4 July.

It is currently projected that Malta Government Stock issues this year will amount to almost Lm149million. Of this amount, just under Lm49 million represent conversion issues to refinance the two stocks that will mature during the year.

The 2003 issue programme will be spread over three issues planned for February, July and October.

It is also planned that an amount of between Lm40 million and Lm60 million will be offered in each issue, depending on market conditions prevailing at the time of issue.

The maturity structure of this year’s issues, meanwhile, will be a mix of medium, six to 10 years and long term, 11 to 15 year, issues.

The Treasury, however, has reserved the right to alter amounts, terms or issue dates indicated above in the event of exceptional circumstances or significant changes in market conditions and details of the terms and condition of each issue will be published in the Government Gazette prior to the actual date of each issue.

Treasury Bills

Auctions will be held with a combination of tenures over the year and a focus will be applied to the three month tenure that constitutes the money market benchmark, although weekly issues will include a mix of the one month, six month, nine month and 12 month Treasury Bills.

The Treasury is currently exploring the possibility of introducing shorter term Treasury Bills of two weeks, one week or less.

A calendar showing the individual weekly issues is published in advance on a monthly basis. Depending on the prevailing circumstances, details as to the tenure are normally announced two weeks in advance.