Bulgaria sells €4 billion in bonds, its biggest-ever Euro debt haul

Bulgaria sold a total of 4 billion ($4.5 billion) in bonds, its biggest ever haul of euro denominated debt in a single day, to fund its growing budge...

Bulgaria sold a total of €4 billion ($4.5 billion) in bonds, its biggest ever haul of euro-denominated debt in a single day, to fund its growing budget deficit in preparation for euro adoption.

The Balkan country priced a deal for €2.25 billion in 9-year bonds and €1.75 billion in 13-year securities on Monday, according to a person familiar with the matter who asked not to be identified.

Prime Minister Rosen Zhelyazkov’s minority government is looking to secure funding for its budget gap, set at 3% of economic output for this year, as well as to increase the capital of state-owned companies. The budget bill allows the cabinet to take on new debt of as much as 18.9 billion lev ($11 billion) in local and international sales. It has already sold 1.8 billion lev in securities on the local market.

Bulgaria last offered bonds on the international markets in August, when it sold an all-time record of $4.8 billion in a three-part combined euro- and dollar-denominated deal. Monday’s is the largest ever in euros alone.

Tighter spread