Bulgaria Secures €4B from Eurobond Sale
On April 28, Bulgaria's Ministry of Finance successfully issued a dual-tranche Eurobond worth €4 billion on international markets. The first tranche, with a 9-year maturity and a 3.5% annual coupon, raised €2.25 billion. The second, with a 13-year maturity and a 4.125% coupon, raised €1.75 billion, CE Report quotes BTA
The issue was oversubscribed 2.2 times, with demand reaching €8.7 billion. Strong investor interest enabled Bulgaria to secure favorable financing terms, achieving the lowest spreads over interest rate swaps since 2020 for comparable maturities.
This marks the most favorable Eurobond issuance in recent years, backed by investor confidence in Bulgaria’s stable macroeconomic outlook and its expected eurozone accession. The bonds are part of the country’s Global Medium-Term Note Programme and fall within the 2025 budget’s debt ceiling of BGN 18.9 billion.
The funds will be used to refinance existing debt, cover the budget deficit, and support the fiscal reserve.
