Published: July 3, 2012
Republic issues first international bond since 2002.
Bulgaria has re-entered the eurobond market a decade after its last deal, raising €950mn (US$1.1bn) in a new five-year issuance.
The republic raised the money on a 4.25% coupon following a road show across Europe last month – according to the Ministry of Finance, the order book was oversubscribed within 30 minutes of opening, attracting more than 360 investors from the UK, US, Europe and Asia, and some €6bn in orders.
The deal was managed by Raiffeisen Bank International, HSBC and BNP Paribas. The bookrunners managed to tighten the deal’s initial price guidance of 350 basis points over the five-year midswap rate by 30bp during the book building.
“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,” said the Ministry of Finance in its statement.