site.btaBulgaria Issues New Government Debt Worth BGN 300 Mln

The Finance Ministry announced that it has issued successfully BGN 300 million in government debt during an auction held Monday. It is a new issue of 3-year government securities (ISIN BG 20 300 25 113/22.01.2025) denominated in Bulgarian lev, maturing on January 22, 2028, with an annual interest coupon of 2.75%.

At the auction, government securities with a total nominal value of BGN 300 million were sold at a weighted average annual yield of 2.90%.

The approved bids amounted to BGN 300 million in nominal value, including non-competitive bids worth BGN 82.3 million, as stated on the Bulgarian National Bank's (BNB) website.

The total value of submitted bids reached BGN 454.9 million, including non-competitive bids totaling BGN 82.3 million, resulting in a bid-to-cover ratio of 1.52. The average price of the accepted bids was BGN 99.41 per BGN 100 nominal.

The spread compared to equivalent German federal bonds was reported at 74 basis points, according to the ministry's statement.

The last issuance of 3-year government securities took place in July 2024, achieving a weighted average yield of 3.64%.

The auction attracted significant interest from participants. Banks acquired the largest share, at 71% of the total securities sold, followed by guarantee funds (10%), insurance companies (7%), pension funds (5%), and other investors (7%).

This was the first debt issue by the Finance Ministry in 2025.

The ministry plans to offer additional quantities of this issue in the future, the BNB statement added.