08.04.2013

The Ministry of Finance reopened for a second time a 3-year BGN denominated government securities (GS) issue with maturity 30 January 2016. The yield achieved at the auction held on 8 April 2013 is 1.32 %. The coverage coefficient is 3.59, the subscription reaching BGN 143.65 million while the amount offered was BGN 40 million. The increased interest in the GS offered for sale on the primary market is determined both by the active participation of banks and leading institutional investors and the serious presence of contractual funds which acquired a substantial share of the issue offered at the auction. The distribution by investor type is: banks - 50%, guarantee funds- 32.07%, contractual funds - 14.22% and pension funds - 3.71%. The yield achieved at the auction is below that of sovereign bonds with similar characteristics of a number of states - Slovenia (5.93%), Hungary (4.42%), Romania (2.87%), Spain (2.49%), Italy (2.25%), Turkey (1.90%), Ireland (1.85%), Lithuania (1.58%) and others.