government securities issues calendar - 2001
With a view to enhancing the transparency of the government securities
market and contributing to greater efficiency and predictability,
the government has decided to start publishing an indicative calendar
of the annual programme of issues of government securities.
Such a calendar will assist investors to gain a better insight
into what investment opportunities will be available during the
course of the year. It will also help other prospective issuers
to plan the timing of their issue so as to avoid undue pressures
on the local capital market.
Malta Government Stock indicative issue programme for 2001
1. Nine stocks for a total of Lm53.8 million mature during 2001.
Of these, five have a fixed date of redemption whereas four (the
3% Local Development Registered Stocks for a total of Lm2.7 million)
can be redeemed on any day of the year. It has been decided that
these four stocks will be redeemed on the 24th May 2001.
2. It is currently projected that Malta Government stock issues
in 2001 will amount to between Lm125 million and Lm150 million.
However, this projection is a tentative one and the actual amount
of stock issues in 2001 will depend on the outcome of the privatisation
programme which is currently under way. Of this projected amount,
Lm51.8 million represent conversion issues to refinance eight
of the nine stocks that will mature during the year.
3. The 2001-issue programme will be spread over four issues that
are planned to take place in the following months: March, May,
August and November.
4. It is planned that an amount of between Lm30 million to Lm50
million will be offered in each issue, depending on market conditions.
5. The maturity structure of the 2001 issues will be medium term
(six 10 years) and long term (11 15 years). Only
one bond will be offered on each issue date.
6. The Treasury reserves the right to alter the amounts, tenures
or issue dates indicated above in the event of exceptional circumstances
or significant changes in market conditions.
Definitive details of the terms and conditions of each issue will
be announced at least two to four weeks before the actual date
of each issue.
Treasury Bill indicative issue programme for 2001
1. Treasury bills are issued by the government primarily to meet
temporary shortfalls in its cash flow. Government, however, normally
auctions such bills on a weekly basis in order to enhance the
liquidity and the sustained development of the local money market.
At present, the maximum amount of outstanding Treasury bills permissible
by law is Lm200 million.
2. So far, the government has been issuing Treasury bills in tenures
of one month, three months, six months and one year, the latter
being the maximum tenure allowed by law. The Government intends
to start issuing also nine-month bills in order to broaden the
range of tenures available to money market participants and to
foster the further development of the money market yield curve.
The focus will remain on the 3-month tenure, which constitutes
the money market benchmark.
3. The Treasury reserves the right to alter the tenures or issue
dates in the event of changes in market conditions.
4. Definitive details of the terms and conditions of each Treasury
Bill auction will be announced at least two to four weeks before
the actual date of each issue.