10.03.2014

The Ministry of Finance reopened the 10.5 year issue of Government Securities (GS) issued on 15 January 2014 with maturity 15 July 2024. At the auction held on 10 March 2014 the annual average weighted yield achieved was 3.55% for whole amount of BGN 50 million of GS offered. The subscription reached BGN 180.17 million. This corresponds to a coverage coefficient of 3.60 which is the highest value of this indicator for this maturity segment since 2012. After the auction the issue totals BGN 100 million.

The biggest amount of GS acquired banks - 37.53%, followed by pension funds - 34.42%, insurance companies - 14.06%, guarantee funds - 7.29%, investment intermediaries - 6% and other investors - 0.7 of the securities offered. The spread to the benchmark German Bunds in this segment is 192 b.p. 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: Slovenia (3.80%), Poland (4.20%), Portugal (4.48%), Romania (5.22%), Hungary (5.84%) and Greece (6.68%).