Romania issued EUR 4 billion of Eurobonds on February 15, out of which EUR 2 billion of 12-year “green” bonds and EUR 2 billion ordinary 7-year bonds, Profit.ro reported. 

This is the second such operation on the foreign markets after the USD 4 billion FX bonds issued in January.

With the EUR 2 billion of “green” bonds, the first of this type issued by Romania, the government will provide financing for projects such as the development of the subway transport network in Bucharest and Cluj-Napoca, fully electric railway services in the main urban areas in Romania, increasing the energy efficiency of the building stock and establishing new areas of urban forests, as previously declared by the minister of finance, Marcel Bolos.

Romania has total financing needs worth RON 180 billion (EUR 36 billion) this year to finance the public deficit (EUR 17 billion) and roll over the debt maturing during the year (EUR 19 billion). Out of this, it plans to borrow some EUR 13 billion from the foreign markets.

The 12-year bonds have a borrowing cost of midswap rate + 300 basis points (bp), compared to MS + 345 basis points where it was opened. The 7-year bonds cost MS + 270bp, compared to the MS + 305bn opening level, according to Bloomberg. MS currently stands at 2.67% for 7 years and 2.71% for 12 years. 

Subscription volume stood at EUR 6.5 billion for the 7-year bonds and EUR 10 billion for the 12-year ones. 

The arrangers were Citi, Erste, HSBC, JPM, and Societe Generale.

iulian@romania-insider.com

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