-1.4 C
February 1, 2023

MFP borrows RON 300 M at lower costs

The Public Finance Ministry (MFP) has sold state bonds with five-year maturity for RON 300 M on Monday, at a lower cost compared to the previous tender that took place in September. Investors forwarded offers worth RON 824.3 M, however the Treasury borrowed solely the sum stipulated by the borrowing plan, namely RON 300 M. The average yield dropped to 3.09 per cent per year from 3.54 per cent one month ago when the state borrowed only half of the sum scheduled.
In October the Treasury has borrowed RON 1.505 bln, including Monday’s sum, of which RON 1.4 bln as part of reference tenders and the rest through supplementary sessions. For October the Treasury announced a borrowing plan of RON 3.6 bln through the sale of six and twelve-month treasury certificates, and also through the issuance of bonds with three, five and ten-year maturities. Thus, the state announced that it wants to borrow RON 3.3 bln through reference tenders, as well as RON 300 M through supplementary sessions which allow for the borrowing of smaller sums through the sale of bonds on conditions established during the main tender.
Since the start of the year the Finance Ministry has borrowed RON 31.182 bln and EUR 928.7 M from the internal market by selling state bonds, Monday’s tender included. Apart from these sums it also attracted USD 2 bln and EUR 1.25 bln from external markets, through three issues of bonds with 10 and 30-year maturities.
Budget Minister Darius Valcov stated for Bloomberg that Romania plans to sell EUR-denominated bonds worth at least EUR 1 bln on international markets in a tender that will be organized in the following weeks.

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