OFFER OF ROLLOVER TO BONDHOLDERS OF
62+ MALTA GOVERNMENT SAVINGS BOND – ISSUE 2018
ISSUED AT THE RATE OF 3% PER ANNUM
TO A NEW
62+ MALTA GOVERNMENT SAVINGS BOND – ISSUE 2023
ISSUED AT THE RATE OF 3.60% PER ANNUM
The Accountant General invites bondholders of the 62+ Malta Government Savings Bond (MGSB) – Issue 2018 (Maturing Bond) to roll over all their holdings into the 62+ Malta Government Savings Bonds – Issue 2023 (New Bond) with effect from the 19th of June 2023. Existing Bondholders of the 62+ MGSB – Issue 2018 electing to roll over their holdings in the New Bond shall be allocated the 62+ MGSB – 2023 for the same corresponding nominal value of bonds they hold in the 62+ MGSB – Issue 2018.
The new 62+ MGSB – Issue 2023 shall be issued with the same terms as the existing 62+ MGSB – Issue 2018, save for the interest rate which shall be 3.60% per annum fixed for the 5-Year term. The new 62+ MGSB – Issue 2023 shall be issued as set out in the prospectus published on the 26th of May 2023.
Arrangements for Rollover
A prescribed Application Form showing the nominal amount held in the 62+ MGSB – Issue 2018 is being sent by the Accountant General to all the bondholders of the 62+ MGSB – Issue 2018 whose name appeared on the register at close of business of Friday the 26th of May 2023 (the cut-off date). Bondholders who wish to roll over their holdings should complete the Application Form and send it to the Registrar in the self-addressed envelope provided with the Application Form. The Application Forms are to be received by not later than Tuesday 6th of June 2023.
Bondholders who do not wish to choose to roll over their holdings do not need to do anything and will receive the whole redemption proceeds on the maturity date of the Maturing Bond on the 19th of June 2023.
Bondholders of the 62+ MGSB – Issue 2018 electing to roll over their holdings in the new 62+ Malta Government Savings Bonds – Issue 2023 shall be registered as bondholders of the of the New Bond on the 19th of June 2023.
Terms of the new 62+ MGSB – Issue 2023
The terms of the New Bond are similar to the terms and conditions of the 62+ Malta Government Savings Bonds – Issue 2018 except for the interest rate which shall be 3.60% per annum for the whole 5-year term of the Bond maturing in the year 2028. The Bond cannot be negotiated, assigned, transferred onto any other individual or pledged.
Interest will be paid semi-annually in arrears on the 19th of June and the 19th of December of every year during the term of the Bond. Bondholders may withdraw the whole amount invested before the 19th of June 2028 subject to a penalty equivalent to three (3) months gross interest on the principal amount withdrawn at the interest rate paid by the Bond.
More information can be found in the prospectus which is now available and can be downloaded from the Treasury's website at www.treasury.gov.mt.