The Maltese Government’s latest debt issuance, which offered higher interest rates than recent government-stock issues, attracted applications worth approximately €852 million.
Demand reached 284% of the Treasury’s initial authorised issue of €300 million. Even after the government exercised its €200 million over-allotment option, increasing the maximum issuance to €500 million, investor demand exceeded the available amount by approximately 70.4%.
The Treasury offered two stocks: the 3.80% Malta Government Stock maturing in 2036 and the 4.25% Malta Government Stock maturing in 2046.
Retail investors submitted applications worth approximately €162 million through the non-competitive part of the issuance. These applications were accepted in full and accounted for approximately 32.5% of the total amount allocated.
Wholesale investors submitted 41 competitive bids with a combined nominal value of €689.5 million. The Treasury accepted 19 bids worth €337 million, including €155.5 million allocated to the 2036 stock and €181.5 million to the 2046 stock.
The total allocation reached approximately €499 million, meaning that the government used almost the entire €200 million over-allotment option.
The strong demand indicates that investors were attracted by the comparatively high interest rates offered on the two stocks, particularly the 4.25% return on the 20-year bond.
Results can be found here.
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