SOFIBOR / SOFIBID / LEONIA Plus

SOFIBOR / SOFIBID / LEONIA Plus

The SOFIBOR (Sofia Interbank Offered Rate) and SOFIBID (Sofia Interbank Bid Rate) reference rates are produced according to a contract between the Association of Banks in Bulgaria (ABB), the ACI Bulgaria – Bulgarian Dealers Association (BDA), and the Bulgarian National Bank (BNB), signed in October 2002. The first fixing was on February 17, 2003.

The SOFIBOR reference rate is a fixing of the quotes for unsecured BGN deposits offered in the Bulgarian interbank market. It is produced for a set of maturities at 11:00 am (local time) every business day as an average of the ask quotes provided by a representative panel of banks.

The SOFIBID reference rate is a fixing of the quotes for unsecured BGN deposits offered in the Bulgarian interbank market, produced for a set of maturities as an average of the bid quotes.

For the calculation, contributor rates are ranked in order and the top 20% and bottom 20% of all gathered rates are eliminated. The remaining rates are then averaged arithmetically. The reference rates are quoted with spot value (2 business days) for all maturities, except “overnight“, and on an “actual/360” day count convention. They are displayed in a format of three decimal places.

As of July 1, 2017 the LEONIA Plus (LEv OverNight Index Average Plus) reference rate replaces the LEONIA (LEONIA: LEv OverNight Index Average) reference rate as an effective overnight rate computed as a weighted average of all overnight unsecured lending transactions in the interbank market in Bulgaria and as a basis for calculating the Base Interest Rate. The new reference rate LEONIA Plus differs from LEONIA in terms of its wider coverage of data providers, including all BNB-licensed banks and branches of foreign banks in the country and not just part of them, as was the approach for the calculation of the LEONIA reference rate. In the period from December 1, 2004 to June 30, 2017 the LEONIA reference rate was produced according to a contract between ABB, ACI Bulgaria – BDA and the BNB.

The LEONIA Plus reference rate is computed and published by the BNB every business day as of July 1, 2017. The index is displayed in a format of two decimal places. The day count convention is “actual/360” days. When no overnight unsecured deposit transactions in BGN have been effected in a given business day on the interbank market, BNB notes that there is no reference rate available for that day by publishing the indication “n/a” (Not Available).

The information about the current reference rates, by date, period and maturity, about the current contributor banks’ quotes, by period and maturity, about the panel of contributor banks, and also about the Rules and Procedures for the Preparation of the SOFIBOR, SOFIBID and LEONIA Plus reference rates is published on the web-site of the BNB.