Bulgaria starts on June 25 a series of investor meetings across Europe ahead of the eurobond issue that the country plans to float this year, one of the banks organizing the meetings said.
Bulgaria's parliament ratified at the beginning of June contracts with BNP Paribas, HSBC and Raiffeisen as mediators for the eurobond issue. The three banks will organize the meetings with investors.
Bulgaria plans to tap international markets to raise funds to repay the first tranche of about EUR 835 M (USD 1.07 B) in 11-year eurobonds maturing on January 15, 2013.
The bonds offered on international markets will be worth up to EUR 950 M.
The interest rate will range between BGN 8-12 M per month, Finance Minister Simeon Djankov explained.
"That's why we decided to start in the spring. The second tranche matures at the beginning of 2015, so the next government will be in the same situation that we are now," he added.
BNP Paribas, HSBC and Raiffeisen have been appointed to advise the Bulgarian state as well as manage the sale of the bond.
Bulgaria is likely to issue its five-year sovereign eurobond on better terms than the country's foray into international capital markets back in 2002, according to analysts.
The Balkan country expects the interest rate - or yield - that it would have to pay on this new five-year bonds to be 5.5%, 2% lower than the 11-year eurobonds issue maturing on January 15, 2013.
According to unconfirmed information Finance Minister Simeon Djankov has decided to go for a five-year maturity partly because of the low indicative prices that the three financial institutions offered - less than a 4% yield - on bonds with that maturity.