site.btaCentral Bank to Hold Auction for BGN 200 Mln Government Securities at 3.2% Annual Interest

The Bulgarian National Bank is holding September 26 an auction for interest-bearing government securities for BGN 200 million with a maturity of five years and six months and a fixed annual interest rate of 3.2%, the BNB and the Ministry of Finance said.

The securities mature on March 28, 2028.

Primary dealers may participate in this auction with noncompetitive bids on their own behalf but for the account of their clients other than banks or investment intermediaries, including those established in another Member State or in a third country. Half of the government securities will be up for competitive bidding and half for noncompetitive bids. The maximum quantity of government securities which a participant may acquire with competitive bids is 50% of the quantity earmarked for sale through competitive bids. The Finance Ministry has the right to reject any bids, respectively approve certain bids, as well as approve an amount, which differs from the initially announced amount, the central bank said.

On September 20, Bulgaria auctioned off T-bonds worth BGN 200 million at a weighted average annual yield of 3.01%. On 16 September, the Finance Ministry floated euro-denominated bonds in two tranches of the total amount of EUR 2.25 billion on the international capital markets. The first tranche has a maturity of seven years, a total amount of EUR 1.5 billion and an interest coupon of 4.125%. The second tranche has a maturity of 12 years, a total amount of EUR 0,75 billion and an interest coupon of 4,625%. Last spring, the State sold government securities at an annual yield of 0.55 and 1.33%.