Romania issues EUR 1.25bn Eurobond at 3.7% yield

By bne IntelliNews April 16, 2014

Romania issued on April 15 a EUR 1.25bn Eurobond at a yield of 3.7% and with a maturity of 10 years, budget minister Liviu Voinea told Adevarul daily.

Earlier this month, news agency Mediafax quoted unofficial sources saying that Romania has hired Citigroup, Societe Generale, UniCredit and ING to intermediate a Eurobond denominated in euro with a planned 10-year maturity. There is a window of opportunity for the country on the foreign capital market - the sources commented.

Romania has launched two Eurobonds earlier in January, when it drained USD 2bn in two issues of USD 1bn each with maturities of 10 years and 30 years. Under the latest Eurobond denominated in euro, Romania drained EUR 500mn at 4.15%. The yield decreased by 70bps from September.

YIELD LOWER THAN EXPECTED. The yield was eventually below the government’s expectations and places Romania among the countries with better country ratings, Voinea commented. The indicative yield was set at 225bps above midswap [specifically at 3.99%], while eventually the yield was set 200bps above midswap [which meanwhile edged up 4bps to 1.74%].

HOPING FOR S&P SOVEREIGN RATING UPGRADE IN H2. Romania expects an upgrade from the S&P – the sole of the three rating agencies that keeps the country outside the investment grade region. The S&P improved the country’s outlook to positive last November, but has taken no steps meanwhile. Earlier in 2008, the rating agency downgraded the rating to a non-investment grade amid the global financial crisis.

Last November, Romania’s government lifted the target size of the medium term notes (MTN) programme started in 2010 from EUR 8bn to EUR 15bn and extended its deadline from end-2013 to end-2016. The MTN programme was thus supplemented with EUR 7bn to be issued over 2014-2016. For this year alone, Romania plans issues of EUR 2bn, the government has said, adding however that in case the market conditions are favourable more issues could be launched in order to pre-finance next years' public deficits.

Related Articles

Hungarian branch of Bucharest listed Digi to buy Invitel Tavkozlesi in €140mn deal

Bucharest listed Digi Communications announced on July 21 that its Hungarian subsidiary, Digi Tavkozlesi es Szolgaltato, has signed an agreement to acquire Hungarian broadband and telephone provider ... more

Romanian media tycoon Voiculescu to be released on parole

A Romanian court ruled on July 18 that media tycoon and former politician Dan Voiculescu, who was sentenced to 10 years in prison in August 2014, should be released on parole after serving ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Dismiss