Invest in Bulgaria - The Preferred Partner of Investors Seeking Opportunities in Bulgaria
Follow:
GUGUSHEV & PARTNERS is among the leaders on the Bulgarian legal market Comprehensive Organization of MBA and EMBA Study Trips in Bulgaria
NEWS BY TOPIC
FDI in Bulgaria (13)
Health (4)
Macroeconomic Data (49)
Business (361)
Investments (155)
Infrastructure (97)
Financial (126)
Economy (350)
Construction (14)
Politics (62)
Real Estate (27)
Interesting Facts (24)
Sports (10)
NEWS BY SECTOR
Software and Information Technology (28)
Real Estate (56)
Tourism (112)
Waste Management (9)
Automotive (23)
Electronics (3)
General (81)
Renewable Energy (66)
Agriculture (22)
Construction (90)
Food and Beverage (20)
Textile (2)

Bulgaria, Lithuania Neck and Neck in Bond Success - FinMin
BULGARIA, LITHUANIA NECK AND NECK IN BOND SUCCESS - FINMIN
Date: 09/07/2012
Source: novinite.com
Bulgaria, Lithuania Neck and Neck in Bond Success - FinMin

Bulgaria's success in floating EUR 950 M worth of five-year bonds last week at a yield of only 4.25% comes close to the price higher-rated Lithuania achieved earlier this year, the finance minister has boasted.

The Lithuanian government raised EUR 400 M on international markets in April 2012 after issuing a euro-denominated bond with 4.21% yield.

"It is important to point out however that Lithuania enjoys a higher credit rating than Bulgaria's," Finance Minister Simeon Djankov commented.

Bulgaria's government and analysts have repeatedly stressed the fact that the sale was oversubscribed, and the yield – lowish, indicating that Bulgaria is under much less pressure in comparison with countries, considered until recently much less risky.

An Italian and Spanish recent issue of similar bonds reached a yield of about and over 5% even though the credit ratings of the two countries are higher than Bulgaria's.

Croatia – whose economy is considered much more developed than Bulgaria's - sold USD 1.5 B of dollar-denominated, five-year bonds to investors in April this year at a yield of 6.37% and price of 99.472. The bond carried a coupon of 6.25%.

A Romanian issue in the middle of last month was undersubscribed, while Serbia's 53-week local currency yield reached 14.25% on July 4.

Bulgaria tapped 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 Balkan country sold EUR 950 M worth of five-year government bonds at an interest rate of below 5%, considerably lower than the yield of 7.5%, which was achieved during the country's foray into international capital markets back in 2002.

Analysts have also commented that the timing for the eurobond was right as it seized sudden improvement in market sentiment following the latest European Union summit.

BNP Paribas, HSBC and Raiffeisen were appointed to advise the Bulgarian state as well as manage the sale of the bond.

Bulgaria is rated Baa2 by Moody's Investor Services Inc., and BBB by Standard and Poor's Corp.


Topic: Financial



Featured District
MONTANA DISTRICT AND CITY INFORMATIONMontana
Invest Bulgaria Charts
Current and Capital Account of Bulgaria
Current and Capital Account of Bulgaria

Tax Revenue of Bulgaria
Tax Revenue of Bulgaria

See all charts
Did You Know?
Nazdrave
Nazdrave
Making a toast when drinking liquor is de rigeur. When toasting, raise your glass and lightly clink ... More

Bulgaria is one of the biggest producers of rose oil. Bulgarian roses are widely grown in our country, using cultivation methods that have preserved the characteristics of the flower unchanged for more than three centuries.

Intelligence Pathways - Outsource your Business, Competitive Intelligence or Back Office to Bulgaria

Bulgaria Translation - Full service Bulgarian Translation company

© Copyright 2004-2019 Invest Bulgaria Group Ltd, Sofia, Bulgaria. All rights reserved.

 
Please read Conditions of Use, Copyright Statement and Privacy Policy for this web page and web site.


Bulgaria Translation Bulgarian Agriculture Bulgarian Textile BestFlowers.bg Sofia Web Works Bulgarian Coins Intelligence Pathways Bulgarian Outsourcing

Crafted by Sofia Web Works. Maintained by Website Maintenance, the kings of Website Migration.


Our Featured Members