18.03.2013

On 18 March 2013 the Ministry of Finance held an auction for the placement of the 7-year Euro denominated bond issued on 16.01.2013 with maturity 16.01.2020. This is the third reopening of the issue since the beginning of 2013 and after the auction its nominal totals EUR 60 million.

All GS primary dealers took part in the auction and demand exceeded almost three times the amount offered - EUR 20 million, the primary dealers subscribing EUR 59.18 million. The coverage coefficient achieved 2.96 marks increased investor interest compared to the previous reopening of the issue on 11 February 2013. Besides the traditionally strong presence of banks which acquired 88.85% of the approved nominal, pension funds and insurance companies also participated in the auction acquiring 9.15% and 2% respectively.

The average weighted annual yield achieved at the auction is 2.82%, which is below the current yield on bonds with similar characteristics of Hungary (5.28%), Croatia (4.75%), Slovenia (4.70%), Spain (4.07%), Italy (3.94%), Ireland (3.50%), etc.

The sustainable level of demand of GS on primary market is indicative of the positive attitude of investor community to the domestic government debt market.