​62+ Malta Government Savings Bond – September 2017: Allocation results and notice of a new issuance of 62+ Malta Government Savings Bond up to a maximum of €30 million in October 2017

 

Allocation of the 62+ Malta Government Savings Bond (September 2017)

With reference to the press release issued on Monday 4th September 2017, the Accountant General announces the allocation policy for the applications received from eligible individuals as provided for under paragraph 10 (b) of the Prospectus issued on Tuesday 29th August 2017. 

The Treasury received 12,305 applications for a total nominal amount of €107,100,900. Due to the strong demand, the Treasury is exercising its option to utilise the additional sum of up to €20 million such that the aggregate amount to be allocated will be increased up to a maximum amount of €70 million. The allotment in the 62 + Malta Government Savings Bond will be as follows: –

– applicants subscribing up to and including €5,000 will be met in full;

– applicants subscribing above €5,000 will receive a minimum of €5,000 per applicant plus an additional 22% of the remaining unallocated balance per applicant rounded up to the nearest €100 (please refer to the table below for some examples of allotted amounts from the subscribed amounts).

 

 

€

€

€

€

€

€

€

€

€

€

Amount applied

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

Amount allotted

6,100

5,900

5,700

5,500

5,300

5,000

4,000

3,000

2,000

1,000

 

In this regard, the Treasury is allotting the amount of €69,895,000. 

As stipulated in the prospectus, interest on the 62+ Malta Government Savings Bond commenced accruing as from 13th September 2017.  Additional information can be found on the Issuance Results of the 62+ Malta Government Savings Bond published on the Treasury’s website at www.treasury.gov.mt.   

Another opportunity for applicants whose application was not accepted in full

The Treasury announces that there is going to be another opportunity for the applicants of the 62+ Malta Government Savings Bond whose application lodged in September exceeded the amount of €5,000.  These applicants may participate on a voluntary basis in a new issuance scheduled for October 2017.  In the coming days, these applicants shall receive a letter asking them to make a choice whereby instead of receiving a full refund of the amounts not allocated from the first issuance, opt to use these unallocated funds which are currently held at the Treasury, to participate in the second issuance of the 62+ Malta Government Savings Bond.  

Applicants who receive the letter from the Treasury and wish to participate should sign the letter and hand it at the bank or other authorized Investment Service Providers on the dates that will be announced in the prospectus which shall be published soon.  

Those who choose not to participate will receive the refund

If the applicants of the first issuance whose applications were not accepted in full choose not to participate in the second issuance, they will be refunded for the amount not allocated. 

The second issuance (October 2017) : Only applicants who applied for more than €5,000 in the first issuance and new eligible applicants who did not participate in the September 2017 issuance can apply.

The amount issued shall be up to a maximum of €30 million and the bond shall be issued with the similar terms and conditions to those of September 2017, including, (i) the bond will be issued at par, (ii) will not be negotiable, (iii) pays an interest rate of 3% per annum (iv) matures on 13th September 2022 and (v) eligibility is limited to individuals born in 1955 or before.  

The applications of the new applicants may be made for amounts up to a maximum of     €10,000 and a minimum of €500 and these will be subject to the same allocation policy applied for the applicants of the first issuance of the 62+ Malta Government Savings Bond, the details of which can be found above. 

This is being resorted to such that according to the amount applied, the new applicants will be allotted the same amount of Savings Bonds allotted to the applicants of the first issue as long as, when such allocation policy is applied to the new applicants participating in the second issuance, the amount of €30 million is not exceeded. 

In the event where after applying this allocation policy to the new applicants participating in the second issuance, the amount of €30 million is reached or exceeded, there shall not be any amounts left to be allocated to the applicants of the first issuance who opted to participate in the second issuance. 

If after processing the first stage of allocation of the second issue, there remain amounts to be allocated from the issued amount of €30 million, this will be allocated and distributed among all the applicants who participated in the first and second issuance, whose applications were not accepted in full, in accordance with the discretion of the Accountant General. The Treasury does not guarantee that there will be amounts to be allocated to the applicants of the first issue who opted to participate in the second issuance. 

The interest on the 62+ Malta Government Savings Bond – October Issue starts accruing from the date that shall be entered in the Prospectus which is due to be published soon. 

 

Refunds

The refunds to applicants of the first issuance who opted to participate in the second issuance and who were not allotted the full amount applied for even after participating in the second issuance, will be refunded after the allocation of the second issuance of October 2017.

 

To view the official company announcement, click here.