site.btaFinance Ministry Issues BGN 300 Mln in New Government Debt

The Ministry of Finance placed BGN 300 million worth of government securities at an auction on Monday, the Ministry said. The securities are seven-year Treasury bonds (BG 20 400 25 210), first issued on January 27, 2025. The issue is BGN-denominated, maturing on January 29, 2032, with a coupon of 3.25%.

The annual weighted average yield reported at the auction is 3.06%.

The total subscribed amount was BGN 528.9 million, which corresponds to a bid-to-cover ratio of 1.76. The spread reported as against the analogous German Bunds is 82 basis points, said the Finance Ministry.

This was the ninth auction for new domestic debt so far this year, bringing the total domestic debt issued in 2025 to BGN 2.1 billion, according to the Ministry's website.

Bulgaria entered the international capital markets in late April, issuing EUR-denominated bonds in two tranches. The first tranche consists of 9-year bonds to the amount of EUR 2.25 billion, with a coupon of 3.5%. The second tranche consists of 13-year bonds to the amount of EUR 1.75 billion, with a coupon of 4.125%.

The total debt raised on both domestic and international markets this year amounts to nearly BGN 10 billion.

The maximum amount of new government debt that may be assumed this year is BGN 18.9 billion as set out in the 2025 State Budget Act. The total government debt is capped at BGN 61.7 billion by year-end.