BULGARIAN ECONOMY
The Republic of Bulgaria issues EUR 950 million 4.25% bond due 09 July 2017
On 02 July 2012, the Republic of Bulgaria successfully issued a new 5-year benchmark Eurobond via BNP Paribas, HSBC and Raiffeisen Bank International as Joint Bookrunners. More than 360 investors participated in the new issue of the Republic, and the final orderbook exceeded EUR 6 bn.
Following an extensive pan-European road show at the end of June and the EU summit meeting on the strengthening of the European Economic and Monetary Union during the same week, the bookrunners decided to use the positive market sentiment to launch the new bond issue of the Republic of Bulgaria.
The deal was announced at 8:30 a.m. UK time with initial price guidance of 350bps over the 5-year midswap rate. The books grew rapidly and were closed in late morning hours, as a result of the extremely strong investor interest, which amounted to over EUR 6 bn of orders. The solid oversubscription allowed the Joint Bookrunners to tighten the initial price guidance by 30bps and close the books within only three hours at the tighter end of the revised price guidance (MS+320/330bps).
The investor base for this issue was extremely granular and very well diversified both geographically and by investor type.
The strong investor response and robust participation in this transaction demonstrates Bulgaria’s unique credit strengths, as evidenced by its solid macroeconomic performance and remarkable progress achieved in terms of fiscal consolidation and financial stability.
With this bond issuance Bulgaria made an impressive return into the international capital markets, after it had last appeared in 2002. The successful placement of a EUR denominated benchmark size bond in this particularly volatile market environment in Western Europe has emphasized the strong credit story and high market appeal of the Republic of Bulgaria.
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More information HERE
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An interview of Deputy Prime Minister and Minister of Finance Simeon Djankov for the BNT "Denyat Zapochva" programme in respect to Bulgaria's Euro Bond issue HERE
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