19.05.2014

The Ministry of Finance reopened the 2.5 year issue of Government Securities (GS) with nominal value BGN 50 million issued on 26 March 2014 with maturity 26 September 2016. At the auction held on 19 May 2014 the annual average weighted yield achieved is 0.83%; for comparison the yield achieved at the first auction on 24.3.2014 was 1.07%. The participants showed strong interest and the total amount subscribed reached BGN 167.9 million, the coverage coefficient being 3.36.

The biggest amount of GS acquired banks - 50.00%, followed by guarantee funds - 40.06%, pension funds - 6.90% and insurance companies - 3.04%.

The spread to the benchmark German Bunds in this segment is 75 b.p. The yield achieved is below that on bonds denominated in national currency with similar residual maturity of a number of EU Member States and countries from the region: Spain (0.88%), Lithuania (0.94), Slovenia (1.13%), Italy (1.22 %), Portugal (1.38%), Poland (2.82%), Hungary (3.10%), Croatia (3.49%), Romania (3.50%) and Turkey (9.00%).