site.btaFinance Ministry Gives Details on Bulgaria's Issue of EUR 3.1 Billion Triple-Tranche Bond

Finance Ministry Gives Details on Bulgaria's Issue of  EUR 3.1 Billion Triple-Tranche Bond

Sofia, March 20 (BTA) - The Finance Ministry Friday published
details about Bulgaria's issue of a 3.1 billion euro
triple-tranche bond in seven-, twelve- and twenty-year
maturities. The country has achieved an impressive return to the
international capital markets, expanding its yield curve in
euro, the press release reads.

This is the first transaction of the triple-tranche type on the
euro market carried out by a country in the region of Central
and Eastern Europe, the Middle East and Africa. The approved
volume of 3.1 billion euro is also the biggest resource
attracted by a country in this region on the euro market through
a single syndicate of banks, the Finance Ministry said.

Citigroup, HSBC, Societe Generale and UniCredit are the
transaction's lead managers.

The interest coupon rate amounts to 2 per cent for the
seven-year bond, 2.625 per cent for the twelve-year bond, and
3.124 per cent for the twenty-year bond. These are the lowest
rates achieved thus far by Bulgaria on the international debt
capital markets, the press release reads.

A total of 370 investors took part in the three tranches with
the orders placed amounting to 4.9 billion euro.

The strong investor interest combined with a wide variety of
orders placed proves Bulgaria's good solvency, the stable
macroeconomic foundations and the exceptional consistency of the
policies for financial stability and fiscal discipline, the
Finance Ministry said.

New benchmark bonds have been issued successfully, of which 1.25
billion euro are seven-year bonds, 1 billion euro are
twelve-year bonds, and 850 million euro are twenty-year bonds.

Bulgaria has succeeded in attracting an exceptionally varied and
very well diversified basis of investors for the three issues.
The orders for the seven-year bonds reached 2.2 billion euro
from 160 investors. Thirty-five per cent of the investors were
from Bulgaria, followed by 18 per cent from the United Kingdom,
17 per cent from Germany and Austria, 9 per cent from the US, 7
per cent from Central and Eastern Europe, 4 per cent from
Benelux and the Scandinavian Region, 4 per cent from Italy, 3
per cent from Asia, and 3 per cent from other European
countries. Forty-three per cent of the investors were banks, 41
per cent investment funds, 13 per cent insurance companies and
pension funds, and 3 per cent private banks and other investors.


The orders for the twelve-year bonds amounted to 1.5 billion
euro from 120 investors, of which 26 per cent were from
Bulgaria, 23 per cent from the UK, 19 per cent from Germany and
Austria, 13 per cent from the US, 11 per cent from Benelux and
the Scandinavian region, 3 per cent from Central and Eastern
Europe, 3 per cent from other European countries, and 2 per cent
from Asia. Fifty-four per cent of the investors were investment
funds, 42 per cent banks, and 4 per cent insurance companies
and pension funds.

The orders for the twenty-year bonds amounted to 1.2 billion
euro from 90 investors, of which 35 per cent were from the UK,
20 per cent from the US, 16 per cent from Germany and Austria,
13 per cent from Bulgaria, 8 per cent from Benelux and the
Scandinavian Region, 2 per cent from France and Italy, and 4 per
cent from other European countries. Seventy-three per cent of
the investors were investment funds, 17 per cent banks, and 10
per cent insurance companies and pension funds.