In a first, Romania plans to sell on Wednesday 20-year Eurobonds worth at least EUR 1 bln, following the lead of Poland and Lithuania which have tapped international bond markets, sources familiar with the offer stated for Bloomberg.
According to the sources, which wanted to remain anonymous, Romania will issue 20-year Eurobonds at a price 250 base points above mid swaps (the reference level – editor’s note) and 10-year Eurobonds at a price 200 base points above mid swaps. The offer, the first of its kind handled by Romania in 2015, is intermediated by Citigroup Inc., HSBC Bank PLC, Raiffeisen Bank International AG and UniCredit SpA.
“Investors have been waiting for a long time for Romania to return on the market. They have shown that they are interested in longer maturities and I expect to see good demand for this issuance,” Societe Generale SA analyst Roxana Hulea said.
State Treasury Deputy General Director Diana Popescu stated at the end of September that Romania plans to sell Eurobonds worth EUR 1-1.5 bln (USD 1.69 bln) by the end of the year. The Finance Ministry plans to borrow EUR 2 bln from international markets this year but is yet to start doing so, mainly because of the volatility caused by problems in Greece and of the fears concerning China’s economic growth problems. “We are at the stage in which we are monitoring market conditions in order to choose the appropriate moment for the launch of the bond issuance. In the following period we plan to issue Eurobonds worth EUR 1-1.5 bln,” Diana Popescu stated back then.