Historic Debt Issuance: Bulgaria Raises 3 Billion Euros and 1.5 Billion Dollars in Bonds

Bulgaria has taken on new foreign debt amounting to 3 billion euros and 1.5 billion US dollars, announced the Ministry of Finance. As reported by BNR, the triple tranche of Bulgarian bonds generated significant interest among investors, allowing the country to secure highly favorable terms.

For the first time in two decades, Bulgaria issued bonds denominated in US dollars, marking a debut for the country in this currency. The substantial interest and strategic timing contributed to the advantageous conditions achieved, according to the Ministry's statement. The dollar-denominated issue is for 1.5 billion dollars with a maturity of 12.5 years and a 5% interest coupon.

The other two tranches, denominated in euros, have different maturities: 8-year bonds with a volume of 1.75 billion euros and an interest coupon of 3.625%, and 20-year bonds with a volume of 1.25 billion euros and a 4.25% interest coupon.

This triple tranche is part of the Medium-Term Global Program for Issuing Foreign Debt and fits within the limits set by the state budget, which allows for a maximum of 11.7 billion leva in new debt for the year. Bulgaria has already issued government securities on the domestic market worth 1.7 billion leva. No further foreign market issuances are planned for the remainder of 2024.