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Bulgaria's Parliament Approves EUR 950 M Eurobond Float

1 min read Source: Novinite

From our news archive: this article was published in June 2012. Figures and rules may have changed since.

Bulgaria's parliament ratified on Friday the contracts with BNP Paribas, HSBC and Raiffeisen as mediators for the eurobond issue that the country plans to float this year.

The motion, tabled by the government, was approved by 101 members of parliament, 34 voted against, while 12 abstained.

Bulgaria plans to tap international markets to raise funds to repay the first tranche of about EUR 835 M (USD 1.07 B) in 11-year eurobonds maturing on January 15, 2013.

The bonds offered on international markets will be worth up to EUR 950 M.

The interest rate will range between BGN 8-12 M per month, Finance Minister Simeon Djankov explained.

"That's why we decided to start in the spring. The second tranche matures at the beginning of 2015, so the next government will be in the same situation that we are now," he added.

BNP Paribas, HSBC and Raiffeisen will be appointed to advise the Bulgarian state as well as manage the sale of the bond.

Originally published by Novinite.

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