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.
- » Bulgaria's Interim Finmin Porozhanov Voices Concern about KTB
- » 53% of Bulgarians Do Not Trust Banking System – Poll
- » Kiril Ananiev Appointed Caretaker Deputy Finance Minister
- » Depositors in KTB to Protest in Several Bulgarian Cities
- » Bulgaria's Radnevo Municipality Virtually Bankrupt
- » Sofia Branch of NRA Reports 10% Increase In Revenue