site.btaFinance Ministry Auctions Off Government Securities Worth BGN 102.75 Mln

The Finance Ministry on Monday auctioned off government securities of an aggregate nominal value of BGN 102.75 million, achieving a total order book of BGN 156 million and a bid-to-cover ratio of 0.78, the Ministry said. The weighted average annual yield is 4.01%, providing a spread of 221 bps over the analogous German Bunds.

The Finance Ministry had announced it was seeking BGN 200 million on the market.

The reopened issue of 10.5-year T-bonds, first opened in 2016, matures on July 27, 2026.

The investors' profile by type is as follows: banks 90.27%, insurance companies 3.89%, pension funds 2.92%, guarantee funds 1.95 % and other 0.97%.

The BG 20 400 16 219/27.01.2016 was last reopened on September 19 when bonds of an aggregate nominal value of BGN 200 million were offered, the total subscribed amount reached BGN 301.05 million, and the weighted average annual yield was 3.01%.

Monday's auction brings the total debt issued on the domestic market to about BGN 2,253 million.

In September, Bulgaria successfully priced a dual-tranche Eurobond issue worth a total of EUR 2.25 billion (about BGN 4.4 billion) on the international debt capital markets.

The cap on new debt for 2022 has been set at BGN 10.3 billion, of which some BGN 6.65 billion has been issued.

The Ministry of Finance said it had cancelled the issue calendar released on September 13 and will continue following its balanced and flexible debt management policy, taking account of the market situation both on the domestic market and on the international capital markets in accordance with the need for debt financing. Four auctions for BGN 750 million had been scheduled for October.