20.11.2015

The Ministry of Finance reopened a 20-year issue of Eurobonds with maturity 26 March 2035 in an amount of EUR 50 million. The settlement of the transaction is on 20 November 2015 whereby the Bonds in circulation total EUR 900 million.

The reopening operation is of the type private placement of debt which is a standard instrument in the process of government debt management and is used by European Union Member States. The debt operation is realised in line with the documentation under the ratified Global Medium Term Note Programme for issuing debt on the international capital markets and is within the approved in the 2015 Law on the State Budget of the Republic of Bulgaria limits of government debt. The nature of the transaction itself does not presume its public announcement in advance and is a result of an interest declared by a global investor to acquire bonds in confidentiality until the settlement via a chosen by him dealer. The parameters of the transaction are published after its closure on the Luxembourg Stock Exchange where the bonds are registered.

The yield at the reopening on 13 November 2015 is 3.987% and is comparable with the yield on the issued on 29.10.2015 by the Republic of Romania 20-year Eurobonds (3.93%), which have an investment rating by Moody's, Standard & Poor's and Fitch. The spread to the average interest rate swap is 250 pp. The credit ratings of the newly issued bonds awarded by the credit rating agencies with which the state is in contractual relations are identical to those of the state - Moody's Baa2, Standard & Poor's BB+ и Fitch BBB-.