Romania raises €1.25bn upon re-opening 10-yr, 20-yr Eurobonds

By bne IntelliNews February 21, 2016

Romania announced it drained €1.25bn from the international markets upon re-opening the 2025 and 2035 Eurobonds launched last October. The cost of the money decreased to 2.55% for the 10-year maturity and 3.93% for the 20-year maturity, the finance ministry said in a note. Investors have placed orders for €2.3bn of bonds.

Romania's gross financing needs have increased from 8.9% of GDP in 2015 to 9.4% of GDP (RON70bn) in 2016. Of this total, the roll-over of debt maturing during the period will account for 6.8% of GDP this year, down from 7.4% of GDP in 2015.

In October, the country issued €1.25bn of 10-year bonds and €750mn of 20-year bonds. Yields were 2.845% for the 10-year maturity and 3.93% for the 20-year maturity.

Following the re-opening this February, the bonds reached €2bn for the 2025 bond and €1.25bn for the 20-year bond.

The issue was managed by Citigroup Inc., HSBC Bank PLC, Raiffeisen Bank International AG and UniCredit SpA.

Romania plans to issue €3bn worth of Eurobonds this year, and also wants to draw €1.5bn worth of loans from international financial institutions. However, the finance ministry has not yet announced any plans for the first quarter in regard to the volume, maturity or currency of possible Eurobonds.

Separately, Treasury head Stefan Nanu announced that the government will issue five-year bonds denominated in euros, on the local market. The size of the issue has not yet been decided, but it will be “significant”, he implied.

 

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