New Malta Government Stock Issues

Launch Period Monday 28th July till Wednesday 30th July 2014

The internationally recognised credit rating agencies rank Malta as investment grade, with the following credit ratings: Standard & Poor’s (S&P): BBB+; Moody’s: A3 and Fitch: A.

Two stocks will be issued on Monday 28th July: (a) 2% MGS 2020 (V) and (b) 4.1% MGS 2034 (I) Both issues will be redeemed at par (€100 for every €100), on the maturity dates as listed below.

We are attaching an application form for the 4.1% MGS 2034 (I) issue. Inflation-cautious investors should focus on the shorter term issue. Application forms for both issues are available from our office or can be downloaded here:

Amount: €100,000,000 in total  (any combination of the two stocks below)

subject to an over-allotment option of €80,000,000.

Coupon & Maturity: 2% MGS 2020 (V)  –

26th September 2020

4.1% MGS 2034 (I) –

18th October 2034

Issue price: PRICES WILL BE ANNOUNCED ON THURSDAY 24TH JULY AFTER 4.00PM
Interest Dates: 26th September & 26th March

1st pro-rata payment from 04.08.14 to 25.09.14 will be made on 26.09.14

18th October & 18th April

1st pro-rata payment from 04.08.14 to 17.10.14 will be made on 18.10.14

Maximum Investment: €100,000 per person in any or each of the two stocks

THE TREASURY HAS ANNOUNCED THAT IT WILL NOT ACCEPT CHEQUES THAT WERE ISSUED FOR THE MATURITY OF THE 5.1%MGS 2014 (III)

NO COST:  During the launch period our services are completely free of charge.

LIQUIDITY: These bonds can be partly or fully encashed before maturity.  To sell your holdings simply instruct us by phone, fax or email.  Proceeds, including accrued interest, will be paid out after three working days.

15% FINAL WITHHOLDING TAX:  Please tick the relevant box to indicate whether you wish tax to be withheld at source or paid gross.  DIRECT BANK CREDIT: Interest, and refunds if applicable, can only be credited directly to your bank account. Please enter your bank account details including your full IBAN in the relevant box.

PLEASE ACT TODAY: Time frames are very tight. Kindly complete and sign the enclosed application and return to us with your cheque, payable to “The Accountant General”. Where possible, please deliver applications to us in person at our office. Applications will be accepted till Wednesday 30th July, unless the Treasury closes the issue beforehand.

PERSONAL ATTENTION AND QUALITY ADVICE: If you require more information, please phone between 8.00am and 5.00pm from Monday to Friday on 21 344 244 and ask for Diane or Cynthia. Alternatively call Matthew 9947 1525 or Elaine 7942 3375.

Bond prices fluctuate – the longer the term, the wider the potential fluctuation.

If these bonds are sold before maturity you may receive more, or less, than you invested.

This circular in no way implies that this stock-broking firm has any official appointment by the Treasury other than as selling agent.