SOFIA (Bulgaria), March 4 (SeeNews) - Bulgaria's central bank will auction on Monday 35 million levs ($27.2 million/17.9 million euro) in 10-year fixed-rate Treasury notes which are expected to attract huge investor interest, dealers said on Tuesday.
The offer bears an annual interest rate of 4.5%, with coupon payments due semi-annually and the last payment due upon maturity, on January 16, 2018, the Bulgarian National Bank (BNB), which auctions government securities on behalf of the Finance Ministry, said in a statement.
The issue will be oversubscribed over 2.5 times and yields are seen in a range of 5.00% to 5.10%, one dealer told SeeNews.
"Definitely, there will be interest [in the issue] as this is the last auction included in the calculation of the criteria for primary dealers," the dealer said.
To qualify for money market dealership, the primary dealers on the Bulgarian market are required to buy no less than 3.0% of the government securities issued by the Finance Ministry in the period between November 2007 and March 2008. Primary dealers will not be allowed to place more than 30 competitive bids in the auction, the central bank said.
This will be the second batch of an up to 250 million levs issue of 10-year T-notes the Finance Ministry plans to offer this year. The previous batch, auctioned on January 14, was more than twice oversubscribed, yielding an annual average 5.17%.
(1 euro = 1.95583 Bulgarian levs)
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