Consortium of 3 Banks to Sell Bulgarian Govt Bonds Worth BGN 3 B
Bulgaria's Finance Ministry has picked a consortium of three banks, JP Morgan, Citibank and HSBC, to sell government bonds worth BGN 3 B on international markets.
In 2014, Bulgaria's government is to sell bonds worth BGN 3 B on international markets in order to settle external debt worth USD 800 M in early 2015 and to finance a part of the budget deficit, which is to reach BGN 1.5 B in 2014, according to reports of Capital daily.
The contractual relations with the selected banks and the legal consultancy are to be approved by the government, while the external debt contracts are to be ratified by Parliament.
The consortium of JP Morgan, Citibank and HSBC is to hold its first consultations to discuss the currency in which the bonds will be issued, the maturity, and the most appropriate moment for floating them on international markets.
In 2012, Bulgaria sold 5-year bonds worth EUR 950 M at a yield of 4.436% against an interest rate of 4.25%.
Experts have described the choice of banks as fortunate because they can provide international distribution of the government bonds.
This is expected to be the first serious test of the risk evaluation given by foreign investments to Bulgaria's socialist-led coalition government.
- » Bulgarian National Bank Presents New BGN 2 Coin
- » Bulgarian Development Bank to Step up Ties with China’s ICBC
- » Bulgarian Parliament Approves 2016 Draft Budget at First Reading
- » Bulgaria’s GDP Grows 2.2% Y/Y in Q3 - Flash Estimate
- » Bulgaria Swings to Mild Inflation in October
- » Bulgaria Curbs Cash Payments at BGN 5,000, Tightens VAT Rules for Company Cars