Finance Ministry Reopens 5-Year Issue of BGN-Denominated Govt Securities at 0.94% Yield

Bulgaria’s Finance Ministry reopened a 5-year issue of Government Securities (GS) with maturity February 4, 2020.

Securities with nominal value of BGN 100 million were offered at the auction held on September 14, 2015 . The annual average weighted yield achieved was 0.94%.

By comparison, the yield achieved at the previous auction on May 18, 2015 for the same issue was 1.28%.

The participants showed high interest in the auction and the subscription totaled BGN 197.50 million, the bid-to-cover ratio being 1.98.

The spread to the benchmark German Bunds in this segment is 92 b.p.

Banks acquired the biggest amount of GS at the auction, i.e. 64.30%, followed by pension funds with 9.50%, insurance companies with 8.20%, guarantee and contractual funds with 7.00% and other investors with 11.00%.

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