17.09.2013

The Ministry of Finance reopened for the sixth time the medium term 5-year benchmark Government Securities (GS) issue denominated in BGN with maturity 23 January 2018. At the auction held on 16 September 2013 GS to the amount of BGN 45 million were offered for sale and the yield achieved was 2.35%. The subscription reached BGN 114.65 million, the coverage coefficient being 2.55. After the auction the issue totals BGN 280 million.

Banks acquired 53.94% of the total approved amount, followed by pension funds - 35.61%, guarantee funds - 8.89% and insurance companies - 1.56%. The yield achieved is considerably lower than the current yield on bonds with similar maturity of a number of EU Member States: Portugal (6.83%), Slovenia (5.42%), Hungary (5.31%), Croatia (4.54%), Romania (3.83%), Italy (3.25%), Spain (3.08%), Ireland (2.92%) and others.