Bulgaria reports successful auction of 200M leva government securities

Bulgaria’s Finance Ministry reported on July 11 a successful auction of 200 million leva (about 100 million euro) lev-denominated government securities, in a move linked to helping finance the $1.25 billion purchase of eight F-16 fighter jets.

The ministry said that on July 22, it had reopened an issue of 20-year leva-denominated government securities (GS) placed on June 21 2019 and maturing on June 21 2039.

GS of an aggregate nominal value of 200 million leva were offered successfully at the auction at a weighted average yield of 1.52 per cent. The total subscribed amount reached 282.73 million leva, which corresponds to a bid-to-cover ratio of 1.41.

The spread reported to the analogous German Bunds is 147 basis points, the ministry said.

“Participants were highly interested, with the biggest amount of GS acquired by banks – 40 per cent, followed by insurance companies with 26 per cent, pension and guarantee funds with 23 per cent, investment intermediaries with one per cent, and other investors with 10 per cent,” the Finance Ministry said.

This is Bulgaria’s second government securities auction in 2019 linked to the F-16 deal, following a 300 million leva one in June.



The Sofia Globe staff

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