October 4 (SeeNews) - Bulgaria raised 102.75 million levs ($51.9 million/52.5 million euro) from the reopening of an issue of ten-and-a-half-year fixed-rate Treasury bonds, below its original target of 200 million levs, the central bank said on Tuesday.
The government bonds were placed at a weighted average annual yield of 4.01% in Monday's auction, the Bulgarian National Bank (BNB) said in a statement.
The securities carry an annual coupon of 2.25% and will mature on July 27, 2026.
In a separate statement, the finance ministry said that the largest share of new government debt, 90.27%, was acquired by banks, followed by insurance companies – 3.89%, pension funds – 2.92%, guarantee funds – 1.95% and other investors – 0.97%.
The result of the latest auction is a sign of the strong volatility of European and global financial markets, the significant and ongoing increases in the cost of debt financing and accompanying constraints on debt guarantees, according to the ministry.
In this context, the finance ministry said it has decided to cancel the sovereign debt auctions planned for the rest of the year under a timetable released in September. The ministry had last month announced it will seek to raise a total of 2.05 billion levs through T-bond issuances on the domestic market until the end of 2022.
Last week, Bulgaria raised 149.95 million levs from the sale of a new issuance of five-and-a-half-year fixed-rate Treasury bonds. The securities were again placed below the 200 million levs target.
Details of Monday's T-bond auction follow (in millions of levs unless otherwise specified):
Nominal value of offered securities |
200.0 |
Nominal value of bids admitted for participation |
156.0 |
- competitive |
150.0 |
- non-competitive |
6.0 |
Nominal value of bids approved |
102.75 |
- competitive |
96.75 |
- non-competitive |
6.0 |
Weighted average annual yield, pct |
4.01 |
Annual interest rate, pct |
2.25 |
Bid-to-cover ratio |
0.78 |
Source: BNB.
(1 euro = 1.95583 levs)