10.12.2012

The Ministry of Finance (MoF) rejected all orders submitted at the auction held on 10 December 2012 for the sale of 7-year government securities (GS) denominated in euro and issued on 18.01.2012 with maturity 18.01.2019. The decision is consistent with the main objective set in the MoF issue policy for 2012 to ensure the resources needed for funding the budget and refinancing the debt in circulation at an optimum for the issuer price.

At the auction held there was strong investor interest, the volume of the orders received being EUR 90.14 million while the amount offered was EUR 35 million and the average weighted yield on the orders placed was 2.90%. The yield increase claimed by the participants is not consistent with the macroeconomic development of the country, the state of public finances and the record drop of the CDS for Bulgaria, which has reached its lowest levels since 2008. Given the implementation of the Consolidated Fiscal Programme and the financing raised so far in 2012 the MoF has made the decision not to approve the orders placed.