Bulgaria raises 2.5 bln euro in dual-tranche eurobond issue

Bulgaria raises 2.5 bln euro in dual-tranche eurobond issue

Bulgaria raised 2.5 billion euro ($3.0 billion) in a dual-tranche sale of 10-year and 30-year eurobonds of 1.25 billion euro each on September 15 that drew strong investor interest, the finance ministry said on Wednesday.

With the bond sale attracting solid investor demand since the first day of the offering, September 14, Bulgaria priced the 10-year tranche at at 99.863 with a 0.375% coupon at a spread of 60 basis points over mid-swaps, yielding 0.389%, while the 30-year tranche was priced at 97.566 with a 1.375% coupon at 145 basis points over mid-swaps, yielding 1.476%, the finance ministry said in a statement.

The final orderbook reached 3.7 billion euro from 254 accounts on the 10-year, and 3.6 billion from 236 investors on the 30-year tranche, the ministry said, adding that demand came from all over Europe, with fund managers and banks dominating in both tranches.

Bulgaria's last dual-tranche issuance was in March, 2016.

The ministry also noted that the 10-year bond achieved the lowest coupon and yield for Bulgaria, whereas the 30-year tranche is the issue with the largest tenor that Bulgaria has placed.

Bulgaria currently has a "Baa2" issuer rating from Moody's and 'BBB' from both Fitch and Standard and Poor's.

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