Romania tapped the Eurobond market again, raising EUR 2.5 bln with two issues of EUR 1.25 bln each and 6-year and 12-year tenants respectively, Ziarul Financiar reported.

The country plans to raise EUR 10 bln from the foreign markets this year, and it already issued two Eurobonds denominated in US dollars with a combined gross size of USD 2.4 bln (USD 2.1 bln net, adjusted for USD 0.3 bln bonds refinanced).

In 2021, Romania set a similar EUR 10.5 bln combined Eurobond issue target but ended the year with only EUR 7 bln raised and one issue less than planned.

This year, the Government wants to finance its budget deficit 70% from foreign markets.

In the second Eurobond this year, Romania’s Treasury hired Citi, Erste Group, HSBC, ING, J.P. Morgan and Societe Generale to help it raise euro-denominated bonds, according to Profit.ro. The spreads were set at 215bp (6-yr) and 355bp (12-yr) respectively above the mid-swap to drop down to 185bp and 325bp after bids totalling around EUR 4.5 bln were placed.

Eventually, the Government increased the size of each bond to EUR 1.25 bln. Given the mid-swaps of 0.29% and 0.54% respectively, the yield at issue were 2.14% and 3.79% respectively. 

(Photo: Brad Wynnyk / Dreamstime)

iulian@romania-insider.com