site.btaFinance Ministry Issues EUR 150 Mln in Government Bonds with Five-Year Maturity

The Finance Ministry placed a new issue of five-year government bonds worth EUR 150 million at an auction held on Monday, the Ministry said on Tuesday. The issue, which matures on January 28, 2031, carries an annual interest coupon of 2.75%.

The weighted average annual yield achieved at the auction reached 2.94%.

Total bids amounted to EUR 224.37 million, corresponding to a bid-to-cover ratio of 1.50. The reported spread over comparable German federal bonds stood at 49 basis points, the statement said.

This was the second auction for placing new debt in 2026, following the issuance of two-year government bonds worth EUR 150 million on January 19. As a result, total new debt issued since the beginning of the year amounts to EUR 300 million.

Under the Public Finance Act, in the context of a so-called extended budget, the Council of Ministers may incur government debt for refinancing outstanding liabilities up to the amount of annual debt repayments on government debt incurred prior to the start of the respective budget year.

In 2025, the Finance Ministry placed new debt through the sale of government securities totalling approximately EUR 8.9 billion (BGN 17.4 billion). Government securities worth around EUR 1.7 billion (BGN 3.3 billion) were issued on the domestic market, while a further approximately EUR 7.2 billion were raised through two debt operations on international markets.