Finance Ministry Sells 6-year Government Securities for BGN 200 Million
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Loading... - Christian Otto
- 09 Jul 2024
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The Ministry of Finance of Bulgaria has successfully reopened a six-year government bond issue initially put into circulation on May 13, 2024. This bond issue is denominated in Bulgarian lev (BGN) and carries a maturity date of May 15, 2030, with an annual interest coupon rate of 3.25%, according to statements from the Ministry and the Bulgarian National Bank on Tuesday.
At the auction held on July 8, the volume of the issue in circulation was increased by BGN 200 million, bringing its nominal value to BGN 600 million. The weighted average annual yield on the reopened issue was recorded at 3.82%.
Auction Details:
- Total Orders Placed: BGN 259.4 million
- Coverage Ratio: 1.3
- Spread Over Similar German Federal Bonds: 132 basis points
Distribution of Government Securities:
- Banks: 79.9%
- Insurance Companies: 10.2%
- Pension Funds: 9.5%
- Investment Firms: 0.3%
- Other Investors: 0.1%
The reopening of this bond issue has demonstrated strong investor demand, as indicated by the high coverage ratio and the substantial participation from various financial institutions, particularly banks. The issuance provides an attractive yield in comparison to similar German federal bonds, making it a viable investment option within the current market environment.
