site.btaGovernment Sells BGN 200 Mln Issue of Three-Year Securities on Domestic Market

The Finance Ministry placed a new issue of leva-denominated three-year government securities maturing on April 17, 2027, with an annual coupon rate of 3%, according to a ministerial press release circulated on Monday.

The auction marks a resumption of the Finance Ministry's securities issuing activity on the domestic market after a more-than-one-year hiatus. The step comes in implementation of the ministry's securities issuing programme for 2024 and in accordance with its monthly calendar for April, published in March.

Government securities with a total nominal value of BGN 200 million were placed successfully at the auction at a weighted average annual yield of 3.01%.

Investors' bids for the issue totalled BGN 512.5 million, putting the coverage ratio at 2.56. The spread against German federal bonds was 45 basis points. Bidders showed much interest in the securities. Banks acquired the largest share (46%) of them, followed by pension funds (11%), insurance companies (8%), property funds and guarantee funds (6%), and other investors (29%).