20.01.2014

The Ministry of Finance successfully placed a new 5-year Government Securities (GS) issue with maturity 22 January 2019. At the auction held on 20 January 2014 GS to the amount of BGN 50 million have been offered and the annual average weighted yield achieved is 2.18%. The total amount subscribed reached BGN 120.86 million, the coverage coefficient being 2.42. The biggest amount of GS acquired banks - 47.30%, followed by pension funds - 43.95%, guarantee and trust funds - 8.42% and other investors - 0.33%.

The spread to the benchmark German Bunds in this segment is 135 b.p. and is the lowest since February 2013. The yield achieved at the auction is below that on bonds denominated in national currency of a number of EU Member States and countries from the region. Spain (2.22%), Italy (2.39%), Slovenia (3.53%), Poland (3.54%), Portugal (4.16%), Romania (4.17%), Hungary (4.47%), Croatia (4.57%) and Turkey (9.89%).