The Ministry of Finance announced that it will auction ten-year government securities totaling EUR 210 million on May 11. According to the Bulgarian National Bank, the bonds, identified as issue BG 20 400 26 218, carry an annual interest rate of 3.5%. This scheduled auction marks the ninth instance of placing new debt on the domestic market since the beginning of this year, according to data from the Finance Ministry.
Overall, the total amount of new debt raised since the start of the year is reported to be EUR 1.2 billion. Should the upcoming auction be successful, the total issued debt for the current year is projected to reach EUR 1.41 billion. The Finance Ministry noted that in 2026, debt from issue BG 20 400 26 218 has already been placed on two prior occasions.
Specifically, in February, government securities valued at EUR 150 million were issued, achieving an average annual yield of 3.84%. A similar offering took place in April, where the same amount was offered, resulting in an average annual yield of 4.18%. The Public Finance Act stipulates that, under the conditions of an extended budget, the Council of Ministers may incur new government debt.
This debt is restricted solely to refinancing existing obligations, up to the amount of annual repayments on debt already incurred.
Topics: #ministry #eur #year
Looks like there’s a significant bond auction scheduled for May 11th.
What is the significance of the ten-year maturity date for this government securities auction?