Borrowing Surge: Bulgaria Raises Over €1 Billion in Early 2026 Debt Issuance

Bulgaria’s new government borrowing for 2026 has surpassed the 1 billion euro mark following the latest successful auction of state securities, according to data cited from the Bulgarian National Bank. The most recent operation involved the sale of 150 million euros in government bonds, marking the seventh auction on the domestic market this year.

During the auction, the Ministry of Finance offered 10-year treasury bonds from issue BG 20 400 26 218, carrying a fixed annual interest rate of 3.5%. Demand exceeded supply, with total submitted orders reaching 163,205,000 euros, including 5,155,000 euros in non-competitive bids. The coverage ratio stood at 1.09, while the average accepted price was 94.69 euros per 100 euros of nominal value.

The Finance Ministry approved 150 million euros in nominal value, including the full amount of non-competitive orders. The average annual yield achieved in the placement reached 4.18%, reflecting investor appetite despite the relatively higher borrowing cost.

Eight primary dealers took part in the auction. The ministry also indicated that additional quantities from the same bond issue will be offered in future placements, suggesting continued market activity in the coming months.

With this latest issuance, total new debt raised on the domestic market in 2026 has reached approximately 1.05 billion euros, according to calculations based on Finance Ministry data. Officials note that under the Public Finance Act and in the context of a rolling budget framework, the government is permitted to assume debt for refinancing purposes up to the level of annual repayments due.

For context, in 2025 Bulgaria raised around 8.9 billion euros in new debt through domestic securities and international bond markets, equivalent to roughly 17.4 billion leva.