Bulgaria Places Successfully Schuldschein Loan
Monday, 16 December 2013
Bulgaria successfully completed the private placement of assignable Schuldschein loans with a maturity of seven, ten and fifteen years, the finance ministry said.
The loans are a seven-year 30.5 million euro loan with an annual interest rate of 3.397%, a 10-year 103.5 million euro loan with an annual interest rate of 4.10%, and a 15-year 156 million euro loan with an annual interest rate of 4.60%.
Investor demand exceeded the loans’ ceiling but in view of high demand for government securities on the domestic market and the cap on state debt, the finance ministry approved a total 290 million euro in debt under the three loans.
With the funds the government will fill budget gaps, increase its fiscal reserves and minimize its liquidity risk at the beginning of 2014, the finance ministry said in November.