24.09.2014

The Ministry of Finance reopened the 7-year issue of EUR-denominated Government Securities (GS) issued on 30 April 2014 with maturity 12 February 2021. At the auction held on 23 September 2014 securities to the amount of EUR 35 million were offered, while the annual average weighted yield achieved is 2.20%. For comparison, the yield achieved at the previous reopening of the issue on 26 May 2014 was 2.26%. The participants showed strong interest and the total subscribed amount reached EUR 93.790 million, the bid-to-coverage ratio being 2.68.

The biggest amount of GS was acquired by banks - 50.00%, followed by pension funds - 42.13%, contractual funds - 5.20% and insurance companies - 2.67%.

The spread to the benchmark German Bunds in this segment is 185 b.p. The yield achieved is below that on EUR-denominated bonds with similar residual maturity of a number of EU Member States and countries from the region: Hungary (2.24%), Romania (2.25%), Portugal (2.39%), Turkey (2.82%) and Croatia (3.74%).