Bulgaria will take on a new debt of BGN 500 million

Bulgaria will take on a new debt worth BGN 500 million, it became clear from a statement of the Ministry of Finance on April 11.

At the auction, BGN 500 million aggregate nominal value of government securities were successfully placed at a weighted average annual yield of 0.88%. It is an issue of 3.5-year government securities denominated in BGN, maturing on 17 May 2025.

The total amount of the submitted orders reaches BGN 752.35 million, which corresponds to a coverage ratio of 1.50, the ministry said. The reported spread to similar German federal bonds amounts to 65 basis points, while at the previous auction for the same issue, held in March 2022, the spread to German federal bonds amounted to 81 basis points.

Pension funds acquired the largest amount of government bonds at the auction with 56.2%, followed by banks with 33.58%, guaranty funds with 5.0%, insurance companies with 1.1%, investment firms with 0.12%, and other investors with 4.0%.