EIB successfully places global bond for Bulgaria

17/11/2004 | Intellinews ISI Emerging Markets

The European Investment Bank (EIB) has successfully issued its first global bond in Bulgarian currency aimed at financing local projects

EIB global bond for Bulgaria successfully placed. The European Investment Bank (EIB) has successfully issued its first global bond in Bulgarian currency aimed at financing local projects.

A press release of EIB notes that the BGN 100mn (EUR 51mn) issue has been heavily overbid by international investors coming mainly from Austria, Germany, UK and Italy. The average price of the placed bonds has risen 1pp above the opening level to 99.9% of the face value.

Bank Austria Creditanstalt has acted as lead manager being represented by its Bulgarian subsidiary HVB Bank Biochim in deals arranged with domestic entities. The coupon of the 5-year bond is set at 4.875% forming an yield slightly below 5%. It is interesting to note that the yield achieved at the recently auctioned 5-year EUR 200mn Eurobond of the country's largest GSM operator MobilTel is just slightly higher at 5.005%.

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