site.btaFinance Ministry Reopens 10.5-year Issue of Lv-Denominated Government Securities at Record Low Yield

Finance Ministry Reopens 10.5-year
Issue of Lv-Denominated Government
Securities at Record Low Yield


Sofia, December 9 (BTA) - The Finance Ministry Tuesday reopened
a 10.5-year issue of leva-denominated government securities,
issued on January 15, 2014 and maturing on July 15, 2024, the
ministry said in a press release.

The issue is a reference one in respect to the harmonised
long-term interest rate to evaluate the convergence level as
part of the 2014 Maastricht criteria.

The auction held on Monday was the last one for this year of
issuance. Securities to the amount of 55 million euro were
offered at it, with the annual average weighted yield being 2.90
per cent - the lowest historical value in this segment. The
total amount subscribed reached 102.52 million leva, which
corresponds to a bid-to-cover ratio of 1.84. The spread to the
German Bunds in this segment was 215 basis points.

The biggest amount of government securities was acquired by
pension funds, 58.96 per cent, followed by banks with 26.36 per
cent and contractual and guarantee funds with 14.68 per cent,
the press release reads.

PK/DS


/СН/