04.10.2022

On 3 October 2022 the Ministry of Finance reopened an issue of BGN-denominated government securities (GS) with an original maturity of 10.5 years maturing on 27 July 2026.

GS of an aggregate nominal value of BGN 102.75 million were offered at the auction at a weighted average yield of 4.01%. The biggest amount of GS was acquired by banks – 90.27%, followed by insurance companies – 3.89%, pension funds – 2.92%, guarantee funds – 1.95% and other – 0.97%.

The total subscribed amount reached BGN 156 million, which corresponds to a bid-to-cover ratio of 0.78. The spread reported as against the analogous German Bunds is 221 basis points. The outcome of the auction reflects the strong volatility of the European and global financial markets, the continuing pronounced trend of rising cost of debt financing and the limitations to the provision thereof.

The Ministry of Finance cancels the issue calendar released on 13 September 2022 and will continue following its balanced and flexible debt management policy, taking account of the market situation both on the domestic market and on the international capital markets in accordance with the need for debt financing.