site.bta2.5-Year Issue of Government Securities Reopened

Sofia, August 26 (BTA) - The Ministry of Finance said on Tuesday that it reopened the 2.5 year issue of government securities (GS) with nominal value 50 million leva issued on 26 March 2014 with maturity 26 September 2016. At the auction held on 25 August 2014 the annual average weighted yield achieved is 1.51
per cent. The participants showed strong interest and the total amount subscribed reached 161.1 million leva, the coverage coefficient being 3.22.

The biggest amount of securities was acquired banks - 49 per cent, followed by pension funds - 32.38 per cent, guarantee and trust funds -15.83 per cent and insurance companies - 2.79 per cent.

The spread to the benchmark German Bunds in this segment is 154 b.p. The yield achieved is below that on bonds denominated in national currency with similar residual maturity of a number of EU Member States and countries from the region: Poland (2.30 per cent), Romania (2.72 per cent), Hungary (2.77 per cent), Croatia (2.76%) and Turkey (9.11 per cent).