26.01.2016

The Ministry of Finance has launched a new issue of 10.5-year BGN-denominated government securities (GS) maturing on 27 July2026. GS of BGN 200 million were offered at the auction held on 25 January at a weighted average yield of 2.58 per cent. The subscribed amount totalled BGN 225.2 million, which corresponds to a bid-to-cover ratio of 1.13. The spread to the German Bunds in this maturity segment is 210 basis points. The issue is a benchmark in 2016 in respect of the harmonised long-term interest rate evaluating the convergence level, which is one of the Maastricht criteria.

As to the participants, the biggest amount of GS was acquired by banks - 82.45%, followed by pension funds - 8.05%, investment intermediaries - 5.50%, and other investors - 4.00%.