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.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Moldova’s largest lender maib puts Bucharest exchange listing on hold

The largest bank in Moldova, Moldova Agroind Bank (main), announced it is postponing its plan to list on the Bucharest Stock Exchange (BVB) because certain provisions in Moldovan legislation make the ... more

Romania’s leading financial group Banca Transilvania reportedly takes over BRD Pensii

Banca Transilvania, the leading financial group in Romania by assets, has reportedly reached the stage of agreeing technical and legal details for the takeover of BRD Pensii division from BRD-SocGen, ... more

Romania’s leading lender Banca Transilvania takes over OTP Bank’s subsidiary

Romania’s largest financial group by assets, Banca Transilvania (BVB: TLV), announced that it had signed a contract ... more

Follow Us On

Most Read

  1. Iran vs Israel: Who is better equipped for war?
    5 days ago
  2. Saudi Arabia to scale back plans for Neom city
    8 days ago
  3. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    5 days ago
  4. PANNIER: Caspian military drills that exclude Russia and Iran have some people in Moscow asking questions
    6 days ago
  5. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    19 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    23 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    28 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    21 days ago

Reports

Dismiss