The Treasury said today that the government is aiming to raise €550 million from Malta Government Stock (MGS) issues this year.
That total includes redeeming four MGS issues totalling €191,241,674 which are due to mature on February 21, June 10, July 2 and November 19.
The remaining borrowing will be used to finance the government borrowing requirement and effect changes in the government debt portfolio as required.
There will be two types of securities - the conventional fixed rate MGS, and the Floating Rate MGS (FR Bond) linked to the six month Euribor.
"The conventional fixed rate Malta Government Stock is expected to be the Treasury's primary financial instrument by which to fund the central government borrowing requirements during 2010," the Treasury said.
However it intends to extend the issuance programme of the Floating Rate MGS (with the first issue being launched in November last year) by the issue of a new three-year Floating Rate MGS linked to the six-month Euribor, via the auction system for institutional investors.
There will be four or five issues between February and November 2010, with issuance intervals planned at approximately every two months.
"In the light of any exceptional circumstances and/or substantial changes in the prevailing market conditions, the Treasury will adopt a degree of discretionary measure in the amount that will be allocated for each issue as well as the intervals of issuances."
The maturity structure of the 2010 MGS issues will be a mix of the 3 - 10 year and over 10 year maturity areas.
Details on whether the offer will be for a new stock or a re-opening of an existing MGS will be announced one or two weeks prior to each issue.
Treasury Bills
As for Treasury Bills, auctions will continue to be held on a weekly basis, normally on Tuesday of the auction week.
The maturity structure of issues will include a mix of 28-day, 91-day, 182 day, 273-day and 364-day Treasury bills.
The focus will be on the 91-day tenor, which constitutes the money market benchmark, the Treasury said.
A calendar showing the tenor of the individual weekly issues planned for each month will be published in the Government Gazette in advance on a monthly basis.
The Treasury Bills Prospectus may be viewed on Treasury's website at www.treasury.gov.mt under News & Press Releases section.