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April 12, 2021

Romania sells 10-year Eurobonds at yield of 2.84 pct, lowest ever

Romania’s 10-year Eurobond issue sold this week on foreign markets at the best yield ever attained for this maturity, specifically 2.84 percent, shows data released by the Government on Friday.

For the 20-year Eurobond issue, Romania’s first ever, the yield was 3.93 percent.

Romania raised from foreign markets a total of two billion euros in 2 tranches, one of 1.25 billion euro in 10-year Eurobonds, the other of 750 million euros in 20-year Eurobonds. The issue was oversubscribed with the orders in excess of 5.5 billion euro, the Government informed.

“Romania managed to raise from foreign markets the entire necessary amount for 2015, as it had planned to raise 2 billion euro. The success of the issue proves the investors’ confidence in Romanian economy,” shows the document.

The amount raised in the 10-year Eurobond issue is 1.25 billion euro, with most subscriptions coming from the UK (31 pct), Romania (12 pct), Germany and Austria (11 pct), Central and Eastern Europe (11 pct), Italy (10 pct), the US and Canada (10 pct).

The 20-year bonds were mostly acquired by investors from the UK (42 pct), Germany and Austria (18 pct) and the US (16 pct). Romanian investors account for 8 pct of the amount.

Last year Romania turned four times to foreign markets, raising the equivalent of more than five billion dollars in 10- and 30-year bonds.

Romania has a Baa3 long-term government issuer rating from Moody’s and a ‘BBB-‘ from both Standard & Poor’s, and Fitch.

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