15.04.2024

On 15 April 2024 the Ministry of Finance launched its issuance programme by putting into circulation a new issue of 3-year BGN-denominated government securities (GS) maturing on 17 April 2027, with an annual interest coupon of 3%.

With today's auction, the Ministry of Finance (MoF) has resumed its issuance activity after more than a year's absence from the domestic GS market. The auction is in line with the 2024 MoF's issuance policy and as per the GS issuance calendar for April 2024 published in March.

GS of an aggregate nominal value of BGN 200 million were offered successfully at the auction at a weighted average yield of 3.01%.

The total subscribed amount reached BGN 512.5 million, which corresponds to a bid-to-cover ratio of 2.56. The spread reported as against the analogous German Bunds is 45 basis points. The participants were highly interested, with the biggest amount of GS acquired by banks – 46%, followed by pension funds with 11%, insurance companies with 8%, contractual and guarantee funds with 6%, and other investors with 29%.

In connection with the auction and due to the high public interest, we inform you that investors (legal entities and individuals) may purchase GS on the primary market at the auctions held by the Bulgarian National Bank through a primary dealer of their choice by submitting:

 – competitive bids with their proposed price (up to 30 bids per primary dealer) or

 – non-competitive bids (unlimited number) which are executed at the average selling price achieved at the auction.

The aggregate nominal value of a competitive bid is at least BGN 1,000 and is divisible by BGN 1, while that of a non-competitive bid is at least BGN 50 and is divisible by BGN 1;

The list of primary dealers in government securities is published in the category of Government debt>Government Securities Market>List of Primary Dealers of Government Securities.

The established market infrastructure allows easy access of individuals and legal entities to the domestic government debt market.

Further information on the opportunities for purchasing government securities on the primary and secondary markets is published in the category of Government debt>Government Securities Market>>Government Securities – an Affordable Investment Alternative.