Bulgaria To Auction 35 Mln Levs 5-Yr T-Notes on Oct 20

The offer is expected to produce a maximum yield of 6.1% and be oversubscribed 2.5-3.0 times, a trader told SeeNews without elaborating further.

The issue bears an annual interest rate of 4.25%, the Bulgarian National Bank (BNB), which auctions government securities on behalf of the Finance Ministry, said in a statement. The last payment is due at the maturity date on February 20, 2013.

Monday's issue will be the third batch of an up to 250 million lev issue of five-year T-bonds to be offered by the Finance Ministry in 2008. The first issue worth 30 million levs auctioned in February yielded an avarage 4.87% as the issue was 2.8 times oversubscribed. The second issue of five-year T-notes worth 35 million levs produced an average yield of 5.59 and the issue was 2.6 times oversubscribed.

Primary dealers can place up to 30 competitive bids at the auction, the central bank said.

(1 euro = 1.95583 Bulgarian levs)