17.05.2016

The Ministry of Finance has reopened an issue of 10.5-year BGN-denominated government securities (GS) maturing on 27 July 2026. GS of an aggregate face value of BGN 100 million were offered successfully at the auction held on 16 May at a weighted average yield of 2.41%. For comparison, a yield of 2.58% was reported at the first auction for the issue held on 25 January 2016.

The subscription reached a total of BGN 233.1 million, which corresponds to a bid-to-cover ratio of 2.33. The spread to the benchmark German Bunds in this segment is 228 basis points. The issue is a reference one in respect of the harmonised long-term interest rate to evaluate convergence level, which is one of the Maastricht criteria.

As to the participants, the biggest amount of GS was acquired by banks - 49.91%, followed by pension and guarantee funds with 30.98%, insurance companies with 10%, investment intermediaries with 5.61%, and other investors with 3.50%.