03.12.2013

The Ministry of Finance reopened for the 3rd time the 3-year issue of BGN denominated Government Securities (GS) with maturity 30 January 2016. At the auction held on 2 December 2013 the yield achieved was 1.08%, being the lowest one for that issue. The subscription of GS primary dealers for the amount of BGN 40 million offered was BGN 137.35 million, the coverage coefficient being 3.43. The participants showed particularly strong interest in the portion offered for non-competition orders sale. In order to satisfy the interest of a broader group of investors the MoF decided to approve the whole volume subscribed in the non-competition part as a result of which the total amount of GS approved for sale reached BGN 71.4 million. The biggest amount of GS acquired guarantee and contractual funds - 60.2%, followed by banks - 28% and pension funds - 11.8%. After the auction the issue totals BGN 226.4 million.

The spread to the German Bunds in this maturity segment is 0.98%, being the second lowest value of this indicator since the launching of the issue in January 2013. The yield achieved at the auction is lower than that on bonds with similar maturity of a number of states such as Slovenia (3.40%), Hungary (2.79%), Romania (2.22%), Turkey (2.11%), Lithuania (1.40%), Spain (1.38%) and Italy (1.25%).