12.05.2014

The Ministry of Finance reopened the 10.5 year issue of Government Securities (GS) with nominal value BGN 50 million issued on 15 January 2014 with maturity 15 July 2024. At the auction held on 12 May 2014 the annual average weighted yield achieved is 3.16%, which is historically the lowest value in this maturity segment. The participants showed strong interest and the total amount subscribed reached BGN 190.865 million, the coverage coefficient being 3.82. The issue is a reference one in 2014 in respect of the harmonised long term interest rate to evaluate convergence level, part of the Maastricht criteria.

The biggest amount of GS acquired banks - 47.72%, followed by pension funds - 29.16%, insurance companies - 17.72% and guarantee funds - 5.41%.

The spread to the benchmark German Bunds in this segment is 169 b.p. The yield achieved is below that on bonds denominated in national currency in the same maturity segment of a number of EU Member States and countries from the region: Portugal (3.53%), Slovenia (3.75%), Poland (3.87%), Romania (4.91%), Hungary (5.25%), Greece (6.24%) and Turkey (9.22%).