site.btaMinistry of Finance Successfully Issues Eurobonds on International Capital Markets

On April 28, the Ministry of Finance Bulgaria successfully placed a dual-tranche Eurobond issue on international capital markets, the Ministry said here on Tuesday. The first tranche consists of bonds with a maturity of 9 years, a volume of EUR 2.25 billion and an annual coupon of 3.5%. The second tranche consists of bonds with a maturity of 13 years, a volume of EUR 1.75 billion and an annual coupon of 4.125%.

The total nominal value of the submitted applications reached EUR 8.7 billion, which corresponds to an oversubscription of 2.2 times. Due to strong investor interest and confidence, this oversubscription allowed a significant reduction in the cost of financing for the 9-year bonds to a level of 125 basis points, and for the 13-year bonds to a level of 175 basis points compared to the corresponding average interest rate swaps.

The achieved spreads and interest coupons represent the best conditions achieved within the last 3 transactions on the external markets, compared to Bulgarian Eurobonds of comparable maturity. The nine-year tranche achieved the lowest spread compared to the average interest rate swaps for the Republic of Bulgaria since 2020.

The moment for entering the international capital markets was carefully selected. This contributed to the success in raising the necessary financing in the conditions of continued uncertainty and volatility of the market environment. The transaction was also positively influenced by the growing confidence of the international investor community in our country, based on the stable macroeconomic environment and confidence in the expected accession to the eurozone.

The double tranche bonds are part of the Bulgaria's Global Medium-Term Note Programme on the international capital markets.

The debt operation is within the maximum amount of new government debt that can be assumed during the year of BGN 18.9 billion, set out in the State Budget Act of the Republic of Bulgaria for 2025. By the time of the issue, the debt financing attracted for this year amounted to BGN 1.8 billion and was realized through the placement of government securities on the domestic market in the period January - April 2025.

The realized transaction follows the set main goal of debt management in 2025. The funds raised provide the necessary resources to refinance the outstanding debt, finance the planned state budget deficit, and secure the liquidity position of the fiscal reserve.