11.08.2014

The Ministry of Finance reopened for the third time the 5 year issue of Government Securities (GS) with nominal value EUR 50 million issued on 22 January 2014 and maturing on 22 January 2019. At the auction held on 11 August 2014 the annual average weighted yield achieved is 2.46%. The total amount subscribed reached BGN 89.75 million, the bid-to-cover ratio being 1.80.

The biggest amount of GS was acquired by banks - 63.50%, followed by pension funds - 16.50%, guarantee funds - 16.00% and investment intermediaries - 4.00 %.

The spread to the benchmark German Bunds in this segment is 220 basis points. The yield achieved is below that on bonds with similar residual maturity of a number of EU Member States and countries from the region: Poland (2.87%), Romania (3.52%), Croatia (3.98%), Hungary (4.05%), Greece (4.92%), Cyprus (5.18%) and Turkey (9.24%).