The Accountant General has invited bondholders of the maturing 62+ Malta Government Savings Bond (MGSB) – Issue 2019 (Maturing Bond) to rollover the full maturing value into a new 62+ Malta Government Savings Bonds – Issue 2024 (New Bond) with effect from the 20th of March 2024. Existing Bondholders of the 62+ MGSB – 2019 electing to rollover their holdings in the new 62+ MGSB – Issue 2024, shall be allocated the corresponding nominal value they held in the maturing bond.
The new 62+ MGSB – Issue 2024 shall be issued with the same terms as the existing 62+ MGSB – Issue 2019 save for the interest rate which shall be at 3.35% per annum fixed for the 5-Year term. The new 62+ MGSB – Issue 2024 shall be issued as set out in the prospectus published on the 23rd of February 2024.
Arrangements for Rollover
A pre-printed Application Form showing the nominal amount held in the 62+ MGSB – 2019 is being sent by the Accountant General to all the holders of the 62+ MGSB – Issue 2019 whose name appeared on the register at close of business of Friday the 23rd of February 2024 (the cut-off date). Holders who wish to rollover their holdings should sign the Application Form and send it to the Registrar in the self-addressed envelope provided with the Application Form. Application Forms are to be sent by NOT LATER THAN close of business of Wednesday, the 6th of March 2024.
Bondholders who do not wish to rollover their holdings do not need to do anything and will receive the whole redemption proceeds on the 20th of March 2024 (maturity date).
Bondholders of the 62+ MGSB – Issue 2019 electing to rollover their holdings in the New Bond shall be registered as holders of the of the new 62+ Malta Government Savings Bonds – Issue 2024 with effect from the 20th of March 2024.
Terms of the new 62+ MGSB – Issue 2024
The terms of the issue are similar to the terms and conditions of the 62+ Malta Government Savings Bonds issued in previous years except for the interest rate which shall be 3.35% per annum for the whole five-year term of the Bond maturing in the year 2029. The Bond cannot be negotiated, assigned, transferred onto any other individual or pledged.
Interest will be paid semi-annually in arrears on the 20th of March and on the 20th of September of every year during the term of the Bond. Bondholders may withdraw the whole amount invested before the 20th of March 2029 (the maturity date) subject to a penalty equivalent to three (3) months gross interest on the principal amount withdrawn at the interest rate paid by the Bond.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.