site.btaBulgaria Issues 7-Year Government Bonds with Nominal Value of BGN 300 Mln

The Finance Ministry announced on Monday that it has issued 7-year government bonds denominated in Bulgarian lev, maturing on January 29, 2032, with an annual interest coupon of 3.25%. At the auction conducted on Monday, government bonds with a total nominal value of BGN 300 million were sold at a weighted average annual yield of 3.47%.

The total value of submitted bids reached BGN 457.7 million, resulting in a bid-to-cover ratio of 1.53. The spread compared to equivalent German federal bonds was reported at 107 basis points, according to the ministry's statement. The auction attracted significant interest from participants. Banks acquired the largest share at 55% of the total bonds sold, followed by pension funds at 24%, insurance companies at 13%, guarantee funds at 3%, and other investors at 5%.

In view of the public interest in the auctions held for the sale of government bonds, the Ministry of Finance said that legal entities and individuals may purchase government securities on the primary market at the auctions held by the Bulgarian National Bank through a primary dealer by submitting:

competitive bids with their proposed price (up to 30 bids per primary dealer), or

non-competitive bids (unlimited number), which shall be executed at the average selling price achieved at the auction.

The aggregate nominal value of a competing bid shall be at least BGN 1,000 and a multiple of BGN 1 and of a non-competing bid shall be at least BGN 50 and a multiple of BGN 1.