Bulgaria selling first eurobond in two years

The EU’s poorest member state has attracted €3.75bn in orders for a bond expected to be north of €1bn in size against a choppy financial and political backdrop, reports Elaine Moore.

The euro-denominated September 2024 bond sale was launched on Thursday and is expected to be priced later this afternoon, FastFT reports.

The pricing has been revised from the initial 170 basis points over mid-swaps - the eurozone’s pricing benchmark - to around 160.

Article continues after advert

Bulgaria has undergone political and economic upheaval recently including a rating downgrade by Standard & Poor’s this month to one notch above junk status.

Last week the country nationalised a local bank, Corporate Commercial Bank, in the hope of avoiding a large scale bank run, which has sent bond yields climbing from the record low touched in mid-May.

Citigroup, HSBC and JP Morgan are lead managers on the sale.