On October 3, 2022, the Ministry of Finance reopened the issue of 10.5-year government securities (Government Securities), which are denominated in BGN and mature on July 27, 2026, according to the website of the Ministry of Finance.

At the auction held on Monday, government securities were placed for a total nominal value of only BGN 102.75 million with an initially announced intention to take on debt for BGN 200 million, achieving a weighted average annual yield of 4.01%.

The total amount of submitted orders reached only BGN 156 million, which corresponds to a coverage ratio of too modest 0.78 points.

The achieved interest rate spread compared to similar German federal bonds was 221 basis points (interests on Bulgarian bonds exceed those on German bonds by 2.21%).

The Ministry of Finance points out that the results of the auction reflect the strong volatility of the financial markets in Europe and worldwide, the continued pronounced tendency for the price of debt financing to rise and the limitations to its provision.

At yesterday's auction, the largest amount of 10.5-year government securities was acquired by banks - 90.27%, followed by insurance companies - 3.89%, pension funds - 2.92%, guarantee funds - 1.95% and others - 0.97%.

This is another debt auction that took place with low interest, leading to a high yield on the issued bonds.

On September 26, 2022, the Ministry of Finance put into circulation a new issue of government securities (government securities) with a maturity of 5.5 years, denominated in BGN and with an interest rate of 3.20%.

At that time, bonds for nearly BGN 150 million were placed - below the planned debt assumption of BGN 200 million.

The weighted average yield achieved on 5.5-year bonds was also quite high, reaching as much as 4.13%, and the coverage ratio - just 1.02 points.

The Ministry of Finance also announced that it is canceling the issuance calendar published on September 13, continuing its balanced and flexible government debt management policy, taking into account the market conditions of both domestic and international capital markets, in line with the need to debt financing.

Ministry of Finance

debt

State securities