Romania borrowed USD 1.2 billion from international markets on Friday, June 8, through a new bond issue with a maturity of 30 years and a yearly coupon of 5.125%.

The yield of this bond issue is 5.2% per year, the Finance Ministry announced.

The USD 1.2 billion drawn from investors with this bond issue also included the anticipated redemption of USD 250 million worth of bonds with a remaining maturity of 4 years and a yearly coupon of 6.75%.

The new bond issue was 1.4 times oversubscribed, with over half of the demand (51%) coming from UK-based investors, 22% from US investors and 10% from CEE investors. With this bond issue, the Finance Ministry aims to optimize the state’s debt by lowering costs and prolonging the maturities.

The bond issue was placed by UniCredit, Citibank, HSBC, JPMorgan and Deutsche Bank.

In February, Romania drew another EUR 2 billion from international markets, via two bond issues with maturities of 12 and 20 years.

editor@romania-insider.com