01.07.2013

The Ministry of Finance reopened for a third time this year a 3-year BGN denominated government securities issue with maturity 30 January 2016.  At the auction held on 1 July the yield achieved was 1.64%. The amount offered was BGN 35 million and the subscription amounted to BGN 69.525 million, the coverage coefficient being 1.99. Banks acquired 69.9% of the total approved amount, followed by guarantee funds - 21%, pension funds - 8.6% and insurance companies - 0.5%.

The yield achieved at the auction as a whole is consistent with the global increase of yields on sovereign bonds in all maturity segments. The yield is below that on bonds with similar characteristics of number of EU Member States and Central and Eastern European countries such as Slovenia (4.30%), Hungary (4.03%), Romania (3.01%), Spain (2.73%), Turkey (2.73%), Italy (2.36%), Ireland (1.95%), and is comparable with those of Lithuania (1.65%).

After the last auction the issue totals BGN 115 million.