09.06.2014

The Ministry of Finance reopened for the second time the 5 year issue of Government Securities (GS) issued on 22 January 2014 with maturity 22 January 2019. At the auction held on 9 June 2014 the yield achieved was 1.80% for the GS offered to the amount BGN 50 million and the coverage coefficient was 1.47, corresponding to subscription for BGN 73.40 million. The yield achieved at the first auction held on 20 January 2014 was 2.18% and at the first reopening on 7 April 2014 - 1.89%.

The biggest amount of GS acquired banks - 75.50%, followed by guarantee funds - 15.00%, pension funds - 7.50% and insurance companies - 2.00%.

The spread to the benchmark German Bunds in this segment is 142 b.p. The yield achieved is below that on bonds with similar residual maturity of a number of EU Member States and countries from the region: Slovenia (1.91%), United Kingdom (1.92 %), Portugal (2.26%), Poland (3.06%), Hungary (3.28%), Romania (3.85%), Croatia (4.10%), Greece (4.23%) and Turkey (8.29%).