26.08.2014

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 25 August 2014 the annual average weighted yield achieved is 1.51%. The participants showed strong interest and the total amount subscribed reached BGN 161.1 million, the coverage coefficient being 3.22.

The biggest amount of GS acquired banks - 49.00%, followed by pension funds - 32.38%, guarantee and trust funds - -15.83% and insurance companies - 2.79%.

The spread to the benchmark German Bunds in this segment is 154 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: Poland (2.30%), Romania (2.72%), Hungary (2.77%), Croatia (2.76%) and Turkey (9.11%).