‘Record year’ for Malta Stock Exchange

At a press conference held at the Malta Stock Exchange, Finance Minister Tonio Fenech said that the company’s financial results showed that 2010 was a record year in terms of bond issues. 

During the year, no less than 15 corporate bonds and 12 government stocks were issued, as well as one equity listing. “This was the biggest number of new listings in one year since the Malta Stock Exchange’s inception in 1992,” he said, adding that the value of these listings was over €904 million. This represents an increase of over €100 million compared to the same figure last year, he added.

Fenech added that 2010’s Treasury Bills issue also amounted to €1.3 billion.

Fenech said that while the total value of 2010’s listings was over €904 million, the demand far outweighed the supply. He pointed out how in the most recent bond issue, the bonds were oversubscribed by as much as €53 million beyond the amount allowed by the over-allotment.

Fenech also remarked that this demand seems to be lasting well into this year, as the first bond issue of 2011 just a few weeks ago was fully subscribed to the amount of €200 million, including the €80 million over-allotment.

Fenech added that €108 of the bond issue was taken up by 6,000 small investors (retail clients), while the rest were snatched up by large institutions.

Asked about the potential economic fallout for Malta in the light of the recently-approved no-fly zone and Malta’s likely role in the military actions, Fenech said that Malta’s prominence in international media is likely to damage our desirability as a tourism destination.

He however declined to comment on actual no-fly and military action proceedings, saying that those decisions are up to offices higher than his (the Prime Minister) and that any comment by him would be premature,

Regarding business connections between Malta and Libya, Fenech said that these were closed down completely.

The press conference followed a Board of Directors meeting held earlier that day where the Malta Stock Exchange’s financial results for the year 2010 were approved.