A new issue of government securities, denominated in leva, with a maturity of 7 years and an annual interest coupon of 3.25 percent, was put into circulation by the Ministry of Finance at an auction held today, the ministry announced. The placed quantity (issue No. BG 20 400 25 210/29.01.2025) amounts to 300 million leva at a weighted average annual yield of 3.47 percent.
This is the second government securities auction of the year after the launch of the issuance program on January 20, 2025, the Ministry of Finance recalls. At the first auction, 3-year government securities (No. BG 20 300 25 113/22.01.2025) were placed for 300 million leva with an annual interest coupon of 2.75 percent at a weighted average annual yield of 2.90 percent.
The total amount of orders placed at today's auction reached 457.7 million leva, which corresponds to a coverage ratio of 1.53, the announcement says. The reported difference compared to similar German federal bonds is 107 basis points.
According to the decision taken by the Ministry of Finance, orders in the amount of 300 million leva nominal value were approved, including non-competitive orders in the amount of 92.050 million leva at the following prices per 100 leva. nominal value and the corresponding yields, calculated according to the methodology used by the Ministry of Finance, are specified in a statement on the website of the Bulgarian National Bank.
A high interest was reported from the participants, with banks acquiring the largest amount of government securities at the auction - 55 percent, followed by pension funds with 24 percent, insurance companies - 13 percent, guarantee funds - 3 percent, and other investors - 5 percent.
In connection with the public interest in the auctions for the sale of government securities, the Ministry of Finance clarifies that legal entities and individuals can purchase government securities on the primary market at the auctions held by the Bulgarian National Bank through a primary dealer chosen by them, by submitting: competitive orders with a price proposed by them (up to 30 orders per primary dealer) or non-competitive orders (unlimited number), which are executed at the average selling price achieved at the auction, the statement said. the department.
The total nominal value of a competitive order is at least 1,000 leva and is a multiple of 1 leva, and of a non-competitive order - at least 50 leva and a multiple of 1 leva, the announcement states.
Following the successful placement of new debt today, the Ministry of Finance has issued government securities on the domestic market in a total amount of 600 million leva since the beginning of the year.