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Bucharest
March 3, 2021
BUSINESS

MFP sells EUR 1.3 bln worth of three year bonds

The Ministry of Public Finance (MFP) yesterday borrowed EUR 1.3 bln from the local market by means of a three-year maturity bond issue, upwards of the originally-planned value of EUR 1 bln, at a median yield of 4.8 per cent, Mediafax reports. MFP has attracted an overall EUR 2.05 bln worth of offers from commercial banks for its bond deal. Banks purchased EUR 1.04 bln worth of bonds in their name and EUR 257.05 M for their customers.


When the bond auction was announced, last Friday, MFP said it sought a coupon rate of 4.5 per cent a year on the new-issue bond. Central Bank and ministry officials had previously met with bankers to discuss the refinancing of the bond issue, with the latter favouring an interest approaching 5 per cent a year. MFP is due to reimburse Monday, Nov. 29, EUR 1.42 bln raised in November 2009 by issuing a one-year maturity bond at a median yield of 4.25 per cent a year.

The market expected an yield of 4.6 to 4.9 per cent.

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