site.btaFinance Ministry Issues BGN 300 Mln in Government Bonds on Domestic Market

Bulgaria's Finance Ministry auctioned off 7-year bonds with a par value of BGN 300 million on the domestic market on Monday, the Ministry said on Tuesday. 

The BGN-denominated issue (№ BG 20 400 25 210) matures on January 29, 2032, and has an annual coupon rate of 3.25%. The weighted average annual yield achieved at the auction was 3.3%. 

Bids totalled BGN 523.9 million, resulting in a bid-to-cover ratio of 1.75. The spread over benchmark German Bunds for the allotted BGN 300 million came in at 90 basis points.

In addition, the Ministry tapped the international capital markets twice, issuing EUR 4 billion (BGN 7.82 billion) in April and EUR 3.2 billion (BGN 6.25 billion) in July. Thus, the total amount of new government debt raised on the domestic and external markets in 2025 stands at around BGN 17.4 billion. New debt for the year is capped at BGN 18.9 billion.

In the 2026 Draft Budget, the ceiling for new government debt is set at EUR 10.4 billion. By the end of 2026, public debt is projected to reach EUR 37.6 billion, or 31.3% of gross domestic product.