28.01.2025

The Ministry of Finance has launched a new issue of 7-year BGN-denominated government securities (GS) maturing on 21 January 2032 with an annual interest coupon of 3.25%. This is the second GS auction of the year after the launch of the issuance programme on 20 January 2025.

GS of an aggregate nominal value of BGN 300 million at a weighted average yield of 3.47% were offered successfully at the auction held on 27 January 2025 for the new issue.

The total subscribed amount reached BGN 457.7 million, which corresponds to a bid-to-cover ratio of 1.53. The spread reported as against the analogous German Bunds is 107 basis points. The participants were highly interested, with the biggest amount of GS acquired by banks – 55%, followed by pension funds with 24%, insurance companies with 13%, guarantee funds with 3%, and other investors with 5%.

With regard to the public interest in the auctions for the sale of government securities, the Ministry of Finance would like to clarify that legal entities and individuals may purchase government securities on the primary market at the auctions held by the Bulgarian National Bank through a primary dealer of their choice by submitting:

 – competitive bids with their proposed price (up to 30 bids per primary dealer) or

 – non-competitive bids (unlimited number) which are executed at the average selling price achieved at the auction.

The aggregate nominal value of a competitive bid is at least BGN 1,000 and is divisible by BGN 1, while that of a non-competitive bid is at least BGN 50 and is divisible by BGN 1;

The list of primary dealers in government securities is published in the category of Government debt>Government Securities Market>List of Primary Dealers of Government Securities.

Further information on the opportunities for purchasing government securities on the primary and secondary markets is published in the category of Government debt>Government Securities Market>Government Securities – an Affordable Investment Alternative.