Orders placed for the new Bulgarian global bonds exceed five times the issue

The orders, placed for the new Bulgarian global bonds, with which the Government intends to pay in January the maturing loan, agreed by former finance minister Milen Velchev, exceed five times the issue, Klassa daily learnt from financiers. This practically means that the securities were marketed on the very first day when trade in these started.

“We can say with a great deal of certainty that today (Monday, July 2 – editor’s note) the transaction on the Bulgarian Eurobonds was completed since the offers for the purchase of our securities exceed five times the issue,” financier Andrei Pramov told Klassa.

Bulgaria offered bonds worth €950 mln. By the time Klassa daily went to print, the orders placed stood at almost €5 bn.

According to inconclusive data, the annual interest rate on our securities will be around 4.5%, or about 1.5% lower than the unofficial forecasts of experts for 6%.

“I am rather optimistic about the Bulgarian issue. According to our interim information, the interest rate will be lower than expected. For me, this is a positive sign, proving that when a country observes budget discipline, the market rewards it,” said economist Georgi Angelov.

There were concerns that the intention of Finland and the Netherlands to block the EU decision of buying government bonds on the secondary market with money from the European Financial Stability Fund would have an adverse impact on the Bulgarian Eurobonds, but they did not come true.

“I do not expect the Finnish threat to influence our bond issue. The two events are quite remote in time and do not have any connection. The proposal of Finland is rather related to the problems of Spain and Italy,” commented Angelov. Pramov neither expects a negative effect on the Bulgarian global bonds. “The market assessed us fairly,” stated the financier.

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