Romania raises $3.3bn in US dollar-denominated Eurobonds

By bne IntelliNews July 8, 2020

Romania's finance ministry tapped the international markets on July 7, selling $3.3bn worth of Eurobonds denominated in US dollars with maturities of 10 and 30 years.

Romania previously issued Eurobonds twice this year, raising a total of €6.3bn in January and May respectively. The latest US dollar-denominated bond was issued in June 2018.

The finance ministry sold 10-year bonds worth $1.3bn and 30-year bonds worth $2bn.

The 10-year bonds pay a yearly coupon of 240bp over the mid-swap level while the 30-year bonds offer a fixed coupon of 4% per year.

The last time Romania issued Eurobonds in US dollars was in June 2018 when it raised $1.2bn in a 30-year bond with a 5.125% coupon and a 5.2% yield, 210bp above mid-swap. As the mid-swap on July 7 this year was 0.94, this implies the Eurobond was launched 306bp above — a spread that is wider than two years ago, not unexpected given the country’s fiscal outlook at this moment.

The orders received from investors totalled $2.9bn for the 10-year tranche and $4.4bn for the 30-year tranche, according to Bloomberg data.

This is Romania's first international bond issue after S&P confirmed the country's BBB- rating in May.

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