08.04.2014

The Ministry of Finance reopened a 5-year issue of Government Securities (GS) with nominal value BGN 50 million and maturity 22 January July 2019. At the auction held on 7 April 2014 an annual average weighted yield of 1.89% was achieved. This is the lowest value in this maturity segment since January 2013. The participants showed strong interest and the total amount subscribed reached BGN 107.22 million, the coverage coefficient being 2.14.

The biggest amount of GS acquired banks - 55.46%, followed by guarantee and trust funds - 31.00%, pension funds - 7.60%, insurance companies - 5.40% and other institutional investors - 0.54%.

The spread to the benchmark German Bunds in this segment is 129 b.p. The yield achieved is below that on bonds denominated in national currency of a number of EU Member States and countries from the region: Slovenia (2.00%), Portugal (2.61%), Poland (3.54%), Croatia (4.14%), Romania (4.52%) and Hungary (4.70%), and is identical with that of the United Kingdom (1.89%).