11.03.2013

The Ministry of Finance reopened the 10.5 - year benchmark issue with maturity 9 July 2023. At the auction held on 11 March 2013 the MoF offered for sale GS to the amount of BGN 50 million, the subscription being for BGN 100.55 million. The yield achieved is 3.63%, which shows that the confidence and interest in domestic government debt of investors is maintained. A wide range of investors took part in the auction. The distribution by type of investor shows banks as leaders by acquiring 54.54% of the approved amount, followed by pension funds (20.66%), investment intermediaries (10%), other investors (10%) and insurance companies (4.80%). After the auction the issue totals BGN 150 million.

The yield achieved at the auction is lower than the yield on sovereign bonds with similar characteristics of a number of states: Turkey (6.84%), Hungary (6.3%), Portugal (5.95), Romania (5.71%), Slovenia (5.59%), Spain (4.76%), Lithuania (4%) etc. The stable levels of the CDS indicator (the insurance premium against default of the issuer) reflect the sustainability achieved in the area of public finances in Bulgaria. Under this indicator Bulgaria remains in one group together with the Baltic states, Poland and Slovakia.