Bulgaria issued a 950 million euro ($1.2 billion) five-year benchmark eurobond with an annual yield of 4.25%, the finance ministry said.
The issue, which matures on July 9, 2017, was oversubscribed in just over 30 minutes from hitting the screens as dealers placed bid exceeding 6.0 billion euro, the ministry said in a statement published on its website on Tuesday.
More than 360 investors participated in the auction held on Monday.
The deal was announced at 8:30 a.m. UK time with initial price guidance of 350bps over the 5-year midswap rate. The solid oversubscription allowed Joint Bookrunners to tighten the initial price guidance by 30bps and close the books within only three hours at mid-swaps plus 320bp.
The final allocations of the investor base by region were as follows: UK 25%, Germany 17%, Austria 13%, Asia 9%, US offshore 9%, Switzerland 7%, France 5%, Italy 5%, others 10%. The majority of investors, 43%, were fund managers.
"With this bond issuance Bulgaria made an impressive return into the international capital markets, after it had last appeared in 2002", the statement added.