Latest news

Romania issues 1.5 bln euro bonds in the international capital markets

The Romanian Government raised 1.5 billion euro in a ten-year euro-denominated bond, the first ever with an interest rate below 3 percent (2.981 percent). In comparison, the last similar bond issue in April 2014 was closed with an interest rate of 3.701 percent.

The offering was 2.5 times oversubscribed, thus resulting attractive financial terms for the Government, without paying the share premium, at yield of 2.973 percent.

According to a release of the Government, the amount raised will be used to the partial pre-financing of Romania’s external financial needs next year, strengthening the foreign-currency financial reserve.

The bond issue was arranged by HSBC, Raiffeisen Bank International, Societe Generale and Unicredit Bank.

As regards the allotment of bonds, they were distributed to a broad range of investors from Germany and Austria (23 percent), the UK (18 percent), Central and Eastern Europe (12 percent), Italy (10 percent), Romania (10 percent), non-US residents (9 percent), Benelux (5 percent), Asia and Middle East (4 percent). Most of the bonds (62 percent) were awarded to fund managers, followed by insurance and pension funds (21 percent), banks (13 percent) and central banks and other investors (4 percent).

Financial - Latest news