[ad_1]
Kiril Ananiev
Four banks will issue two bond issues
Bulgaria plans to raise € 2 billion through the global bond markets. The procedure for offering the jobs is expected to begin on Tuesday, September 15. This was reported by Reuters, citing their sources.
The publication also indicates that talks were held with investors on Monday to offer two issues: 10-year and 30-year bonds.
Finance Minister Kiril Ananiev has yet to comment publicly on the issue. Before “24 hours” the Ministry of Finance did not confirm, but did not deny the news.
To increase the debt ceiling by 2 billion euros, the finance ministry received the consent of parliament. In May, then-Finance Minister Vladislav Goranov announced that better market conditions were expected. He also named the selected banks to manage the placement of the new debt: Citi, JP Morgan Chase & Co, BNP Paribas and Unicredit.
According to financial experts, the new debt will cover the budget deficit, which will probably be around BGN 3.5 billion, while the rest will provide liquidity reserves to deal with the economic consequences of the pandemic.
Later on Tuesday night, it became clear that the bond issue had been successfully placed on international markets. Due to high interest and good interest conditions, it was decided to sell securities for 2.5 billion euros instead of the previously announced 2 billion, Capital announced.
Interest was so high that investor requests were 7.5 billion euros.
The yield achieved for 10-year bonds is 0.4% and for 30-year bonds it is 1.48%, which is considered very profitable.
[ad_2]
