ECONOMY FINANCE&BANKING

Romania borrows 1.25 billion euros from foreign markets at all-time low costs

Romania borrowed 1.25 billion euros from foreign capital markets, for all-time cost lows, by reopening books for a dual-tranche tap of October 2015 eurobonds, the Public Finance Ministry announced on Friday.

Of the total amount raised, 750 million euro have a 10-year maturity and 500 million euro have a 20-year maturity.

The bonds were almost twofold oversubscribed.

The amount was obtained for declining yields: 2.55 pct from 2.84 pct for the 10-year bonds and 3.903 pct as to 3.93 pct for the 20-year bonds.

“The transaction confirms the very good perception and investor confidence in the Romanian economy in the context of a volatile market characterized by many uncertainties. Amid strong demand, the yields on government securities are decreasing for securities issued on both domestic and foreign markets. These developments reduce the costs related to the government debt as a result of the extension of the maturity of the debt portfolio,” said Minister of Public Finance Anca Dragu.

The total bid cumulated 2.3 billion euros from 220 orders.

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