/ world today news/ The cabinet took on an external debt of 1.493 billion euros (about BGN 3 billion) at a yield of 3.056%, “Reuters” reported. This is well below the forecast of Prime Minister Plamen Oresharski from the beginning of the week, who expected an average yield of around 4%.
Analysts comment that the interest in the issue was extremely high. In practice, the lowered rating of the country and the problems of KTB did not seriously affect the conditions under which Bulgaria is financed by the international markets. The term of the Eurobonds is 10 years, maturing in September 2024, “Trud” reminds.
Initially, the new debt was expected to be taken in two tranches. Thus, the bonds would mature in 10 and 15 years. The debt placement began on the final day of the road show where the issue was presented to potential investors. The tour went through London, Frankfurt and Paris.
The launch of the issue immediately after the road show is also a sign of significant interest from investors. The funds from the new debt will be used to cover old liabilities. The largest payment is due at the beginning of 2015. Then a loan for 1.086 billion dollars should be refinanced. The money will also be used to cover the budget deficit. According to estimates, this year it should be 1.8% of GDP or about BGN 1.5 billion. Even after the new issue, Bulgaria’s public debt remains among the lowest compared to the obligations of most EU countries.
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