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Bucharest
February 28, 2021
BUSINESS

Finance Ministry borrows RON 241.5 M

The Ministry of Public Finance onMonday sold bonds with a maturity of tenyears worth RON 241.5 M and thus closedthe third consecutive auction where it managedto raise less than it had planned, withthe cost of financing going up compared toJuly and August.The Treasury decided to sell only slightlyover half of the RON 400 M worth ofbonds it proposed to investors, after receivingoffers of RON 401.5 M.The average yield per annum of securitiesfalling due in February 2025 went upto 4.36 per cent from 4.28 per cent inAugust and 4.23 per cent in July. TheFinance Ministry had a previous bondissuance in July, when it raised RON 687M and reopened it in August to borrowanother RON 200 M. The total increasesto 964.3 M including the additional auctions.The Ministry of Finance planed toreopen on Tuesday the issuance through anadditional auction where it will only acceptnon-competitive offers at the yield resultingfrom the one held on Monday. The sumthe authorities intend to borrow in theadditional auction is RON 60 M.The Treasury borrowed in both referenceauctions organised last week less thanit had planned, at growing yields.On Monday it sold bonds falling due inJune 2021, worth a total of RON 244 M,representing 60 per cent of the targetedRON 400 M. On Thursday it attractedthrough five-year bonds a total of RON234.8 M, less than half of the plannedRON 500 M. Since the beginning ofSeptember, the state has borrowed RON500 M through treasury bonds with 12month maturity and RON 1.382 bn byselling bonds, including RON 172.2 Mthrough additional auctions. The Ministryof Finance schedules for September totalloans of RON 2.8 bn by selling governmentbonds and treasury bonds, plus apotential sum of RON 270 M in additionalauctions. The state borrowed in AugustRON 600 M through an issuance of treasurybonds with 12 month maturity andEUR 250 M through bonds, as well asRON 800 M by selling bonds, plus RON120 M in additional auctions.Since the beginning of the year, theMinistry of Finance has borrowed on thedomestic market a total of RON 29.150 bnand EUR 928.7 M by selling state bonds,including the auction on Friday. In addition,the state raised money on internationalmarkets: USD 2 bn and EUR 1.25 bn,through three bond issuances falling dueafter ten and 30 years, respectively.

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