13.01.2015

The Ministry of Finance launched a new 10.5-year BGN-denominated government securities (GS) issue with maturity 14 July 2025. At the auction held on 12 January GS to the amount of BGN 50 million were successfully placed, with the average weighted yield being 3,09%. The subscription totalled BGN 181,03 million, the bid-to-cover ratio being 3,62. The spread to the benchmark German Bunds in this segment is 260 b.p. The issue is a reference one in respect of the harmonised long term interest rate to evaluate convergence level, part of the Maastricht criteria.

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. 50,00%, followed by pension funds with 46,54% and insurance companies with 3,46%.