Bulgaria sells EUR 205mn in 3-month T-bills to repay maturing debt

By bne IntelliNews February 3, 2014

Bulgaria sold BGN 400mn (EUR 205mn) in three-month T-bills at an auction held on Monday, Feb 3, the central bank (BNB) said. 

The average yield settled at 0.45% - below the 0.58% rate the Treasury achieved on its BGN 400mn nine-month securities issued on January 27. Bids for the 89-day T-bills were between 0.49% and 0.24% and the auction they were offered at lured BGN 612.5mn worth of orders, resulting in a coverage ratio of 1.53.

The funds borrowed will help the government repay BGN 470.2mn worth of maturing debt in February. The finance ministry has explained the maturity of the bond sale with the higher investor interest in short-term securities and the desire to adjust the net flows to the budget.

Bulgaria borrowed a total of BGN 900mn in January, which were used to pay agricultural producers early subsidies. The funds will later on be reimbursed by the European Commission.

The date of the next debt auction is set for Feb 10 when the government will offer for sale EUR 25mn of seven-year Treasury notes.

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