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November 30, 2022

Finance Ministry borrows RON 700 M at yield of 1.2 pc, a historic low

The Finance Ministry (MFP) has borrowed RON 700 M from commercial banks on Thursday by issuing one-year government bonds at an average yield of 1.2 per cent per year, a historic low.
The value of the issuance’s prospectus was RON 700 M, but the issuance was oversubscribed threefold. The banks’ bids surpassed RON 2.5 bln.
The MFP plans to borrow RON 3.4 bln from commercial banks in October through 8 tenders for treasury certificates and government bonds. The sums will be used to refinance the public debt and to finance the budget deficit.
The RON 3.4 bln could be followed by another RON 300 M borrowed in supplementary sessions for uncompetitive bids, organized exclusively for benchmark bonds.
According to the issuance prospectuses, the MFP will organize two discount treasury certificates tenders worth RON 700 M each.
Likewise, six tenders for benchmark bonds with 3-, 10- and 15-year maturities and a total value of RON 2 bln are scheduled this month.
In 2015 the MFP plans to borrow from the domestic market approximately RON 10-12 bln by issuing treasury bonds and RON 25-28 bln by issuing benchmark bonds.

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