Romania issues 7-year EUR 1.5bn Eurobond

By bne IntelliNews September 13, 2013

Romania has issued a EUR 1.5bn Eurobond with a maturity of seven years, yielding 4.769%, the country’s finance ministry said on its webpage.

The yield was set at 295bps above midswap – 75bps down from Romania’s latest euro-denominated Eurobond placed in October 2012, the ministry said. The issue was abundantly oversubscribed as banks placed orders for EUR 6.4bn. It was managed by Citibank, HSBC, Societe Generale and Deutsche Bank.

Earlier this year, Romania has also borrowed USD 1.5bn under a bond issued on the foreign markets at a yield of 4.625%.

Romania’s Treasury is re-financing its external public debt that accounted to 57% of the total public debt [EUR 30bn, or 21% of GDP] at the end of May. The total public debt was 37% of GDP at end-May – or EUR 52.6bn. But the Treasury also replenishes the country’s forex reserves that are depleting as Romania is paying back its EUR 20bn borrowed from IFIs in 2009-2011. Overall, the country is paying EUR 5bn under the said financial package to the IMF and the EU this year.

The Treasury has to pay EUR 1bn this year only on the account of the money borrowed from the IFIs as part of the EUR 20bn financial package. The central bank has to return EUR 4bn to the IMF under the same financial package – which has an important impact on the country’s foreign currency reserves.

Related Articles

Former Romanian PM Ciolos to found political party

Romania’s former prime minister Dacian Ciolos, who headed a cabinet of technocrats in 2015-2016, has announced plans to found a political party based on his Romania 100 civic platform. Ciolos plans ... more

EC to sue Bulgaria, Romania for failing to adopt copyright legislation

The European Commission said that will refer Bulgaria and Romania, along with Luxembourg and Spain, to the Court of Justice of the EU as they have failed to notify ... more

Kingfisher takes on Romanian DIY market leader Dedeman with Praktiker acquisition

Brico Depot Romania, owned by UK-based DIY and home improvement products retailer Kingfisher, has completed the acquisition of its peer Praktiker Romania, local media reported on December 4. The ... more