13.05.2013

The Ministry of Finance reopened a 7-year government securities (GS) issue with maturity 16 January 2020. The volume offered was EUR 20 million and the yield achieved - 2.45%. This indicator registered considerable decrease compared with the previous reopening of the issue in March 2013 when the yield was 2.82%. Demand exceeded supply almost three times, the coverage coefficient reaching 2.83. All primary dealers took part in the auction subscribing EUR 56.68 million. Distribution by investor type is as follows: banks (75.83%), investment intermediaries (15.17%) and pension funds (9.00%).

The yield achieved at the auction is considerably lower than that on bonds with similar characteristics of a number of EU Member States: Slovenia - 5.17%, Hungary - 4.35%, Croatia - 4.32%, Spain - 3.38%, Italy - 3.24%, Ireland - 2.92%, etc.

After the fourth reopening the issue totals EUR 80 million which will increase its liquidity on the secondary market.