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@BNB Photo: Stella Ivanova
Bulgaria has successfully issued new government securities totaling 300 million leva, as announced by the Ministry of Finance following an auction held today. The securities, denominated in leva, have a maturity of seven years with an annual interest coupon of 3.25 percent. The weighted average annual yield achieved at the auction was 3.47 percent, with the issue identified as BG 20 400 25 210/29.01.2025.
This marks the second auction of government securities conducted this year, following the first held on January 20, 2025. During that auction, three-year securities with an annual interest coupon of 2.75 percent and a weighted average annual yield of 2.90 percent were issued under BG 20 300 25 113/22.01.2025, also totaling 300 million leva.
Today's auction saw strong interest, with total orders reaching 457.7 million leva, reflecting a coverage ratio of 1.53. The reported spread compared to similar German federal bonds stood at 107 basis points. According to the Ministry of Finance, 300 million leva in nominal value was approved, including non-competitive orders amounting to 92.050 million leva. Prices per 100 leva nominal value and corresponding yields were calculated using the Ministry’s specified methodology, as detailed on the Bulgarian National Bank's website.
Banks were the most significant participants, acquiring 55 percent of the securities. Pension funds followed with 24 percent, insurance companies accounted for 13 percent, guarantee funds acquired 3 percent, and other investors purchased the remaining 5 percent. The Ministry emphasized that both legal entities and individuals are eligible to purchase government securities on the primary market through the Bulgarian National Bank. They can submit competitive orders, limited to 30 per primary dealer, or an unlimited number of non-competitive orders executed at the average selling price.
Competitive orders must have a minimum nominal value of 1,000 leva and be multiples of 1 leva, while non-competitive orders must start at 50 leva and also be in multiples of 1 leva. The Ministry has issued clear guidelines to ensure transparency and accessibility in the auction process.
With the successful placement of today’s securities, the Ministry of Finance has issued a total of 600 million leva in government securities on the domestic market since the start of the year. This issuance reflects ongoing efforts to meet financial goals while maintaining strong market engagement.
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