20.02.2013

In an uncertain political environment in the country the Ministry of Finance successfully sold a 6-month GS issue amounting to BGN 800 million which yet again confirmed the confidence of the investor community.

At the auction held on 20 February 2013 to sell 6-month GS, despite the big for the domestic market amount offered for sale, the orders were for over BGN 1.15 billion, the coverage coefficient being 1.45. The analysis of the investor base is also positive. Traditionally for the short term segment banks acquired the highest share - 81.3%, followed by pension funds - 9.5% and other investors - 9.2%.

Notwithstanding the considerable for the domestic financial market amount the achieved annual average yield for the whole approved amount of BGN 800 million is 1.00%. For comparison, at the last auction for the sale of 6-month GS held in 2011 the yield was 1.38%. 

The yield achieved at the auction is below that of sovereign bonds of similar characteristics of a number of EU Member States and countries from the region - Romania (5.53%), Poland (3.47%), Croatia (2.1%), Slovenia (1.6%).

The results of today's auction prove the market confidence in the financial stability policy implemented in the country. In line with these results are also the stable levels of the CDS indicator, the risk premium against default of the country, which places Bulgaria in the same group with the Baltic states, Poland and Slovakia.