S.L. 575.4 Art. 9Combined issuances.

(1) A combined issuance is an offer composed of two issuance elements, typically intended for two different categories of investors, namely:

(a) the retail sector which are offered the Stocks non-competitively at pre-announced fixed price and subject to a maximum subscription amount per person to be established in the General Prospectus; and

(b) wholesale investors which participate separately via a pre-announced competitive auction in accordance with the terms of the General Prospectus and offering circular.

(2) After the designated time window deadline for submission of applications at pre-announced fixed price (for the retail sector) has passed, the Accountant General shall calculate the total value of applications received and auction the remaining amount (if any) from the issuance amount to wholesale investors on the dates announced on the offering circular. In a combined issuance, the Accountant General shall not disclose the remaining amount available for the auction after the closure deadline of the time window designated for the non-competitive applications.

(3) The Accountant General may cancel the auction as soon as there are indications that the value of applications received from the applicants participating at pre-announced fixed prices is deemed to be close or exceeds the amount on issue including the over-allotment option. In any case the cancellation of the auction is to be announced to the market by not later than one business day after the closing date of applications for the retail sector.

(4) Persons who opt to subscribe at a pre-announced fixed price are not eligible to participate in the auction.

(5) The Accountant General reserves the right to reject applications if the applicant has failed to comply with the terms and conditions of the General Prospectus or of the offering circular, or for any reason whatsoever.

(6) The published results of a combined Malta Government Stock issue shall be issued after the closure of the auction and shall account separately for the results of the auction and the results of applications made through the pre-announced fixed price. The result shall comprise the total value of all valid applications and bids received, amounts allotted and rejected in whole or in part on account of price, and the ratio of the total value of applications and bids received to the amount on offer (the ‘cover ratio’).

(7) The Accountant General reserves the right not to allot all of the Malta Government Stock on offer in a combined issuance, if he judges bids at the auction to be at an unacceptably deep discount to the prevailing market level and therefore not at fair value.