site.btaGovernment Achieves 2.42% Yield on Lv 55 Mln Worth of Securities

Government Achieves 2.42% Yield on Lv 55 Mln Worth of Securities

Sofia, October 7 (BTA) - The Finance Ministry said on Tuesday it
has reopened, for the fourth time this year, an issue of
five-year government securities with a nominal value of 55
million leva, issued on January 22, 2014, and maturing on
January 22, 2019.

The Ministry achieved a 2.42 per cent weighted average annual
yield on these securities at an auction conducted on Monday. The
yield spread above a relevant German benchmark yield was 2.26
per cent.

The orders placed for the securities amounted to 69.2 million
leva, putting the coverage ratio at 1.26.

Some 89.09 per cent of the securities were acquired by banks and
the remaining 10.91 per cent by pension funds.

The 2.42 per cent yield was lower than the market rates on
national-currency-denominated bonds with similar residual
maturity in Romania (3.41 per cent), Croatia (3.59 per cent),
Hungary (3.61 per cent), Greece (4.66 per cent) and Turkey (9.41
per cent).