site.btaFinance Ministry Successfully Places Issue of One-year Lv-Denominated Government Securities

Finance Ministry Successfully Places Issue of One-year Lv-Denominated
Government Securities


Sofia, September 9 (BTA) - The Finance Ministry has successfully
 placed an issue of one-year leva-denominated discount
government securities with maturity September 10, 2015, the
ministry said in a press release Tuesday.

At the auction held on Monday, the annual average weighted yield
 achieved on the approved orders was 0.78 per cent and the
spread to the benchmark German Bunds was 0.86 per cent. The
government securities issued are short-term and no interest
coupon is paid thereon. The yield for investors is formed based
on the discount of the nominal value when acquired. The average
price at which the participants purchased the securities was
99.22 leva for 100 leva nominal. The proposed and approved
volume of the issue was 300 million leva, the subscription
amounted to 694 million leva, the coverage coefficient being
2.31. The proceeds are earmarked for refinancing the issue paid
on September 4 of one-year government securities of the same
amount.

The investor distribution is identical to that of the previous
year: banks acquired 70 per cent of the government securities,
pension funds 16.89 per cent, insurance companies 7.56 per cent,
 and contractual funds 5.55 per cent.

The yield achieved at the auction is below the market yield on
bonds denominated in national currency with residual maturity of
 one year of the following countries: Hungary (1.32 per cent),
Greece (1.44 per cent), Poland (1.97 per cent), Romania (2.10
per cent), Croatia (2.15 per cent), Serbia (8 per cent), and
Turkey (8.47 per cent).

SN/DS

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