21.02.2017

The Ministry of Finance launched a new 4-year BGN-denominated government securities (GS) issue with maturity 22 February 2021. GS to the amount of BGN 60 million were successfully placed at the auction held on 20 February at a weighted average yield of 0.18 per cent which is record low for interest bearing GS. The subscribed amount totalled BGN 213.25 million, which corresponds to a bid-to-cover ratio of 3.55. The spread to the German Bunds in this segment is 80 basis points.

The participants showed strong interest both in the amount offered for competition orders sale and in the portion of non-competition orders sale determined for allocation among investors. Banks acquired the biggest amount of GS at the auction, i.e. 39,32%, followed by contractual and guarantee funds - 32.57%, pension funds - 21.09%, and insurance companies - 7.02%.