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October 5, 2022

Filip & Company assisted the Ministry of Public Finance in a USD 3.3 billion US bond issue

Filip & Company law firm in collaboration with Linklaters assisted the Ministry of Public Finance in a two-tranche bond issue that drew over USD 3.3 billion from the international markets.

According to a press release issued by the law firm, the first tranche of USD 1.3 billion is due in 2031 and bears a 3% interest rate, while the second tranche in amount of USD 2 billion is due in 2051 and has a 4% interest rate.

“Romania has succeded, in a rapid issue series, to access the international capital markets for new Euro and now US dollar issues under very good conditions for this turbulent and uncertain period affecting the entire global economy. From this perspective, we can assert that the bond issue confirms the trust that Romania’s economy benefits from on the external markets, given the high interest showed by the investors. We were glad to help”, said Monica Stătescu (photo), counsel Filip & Company.

The Filip & Company team that assisted the Ministry of Public Finance on this project mainly consisted of Alexandru Bîrsan (partner), Monica Stătescu (counsel) and Andreea Bănică (associate).

Filip & Company has one of the most dynamic and experienced Capital Markets practices in Romania. Our team includes specialists with a rich prior experience gained in complex Romanian and international transactions.


MFP:  The amount represents  the largest volume attracted in dollars, after two years of absence from the foreign capital markets


Romania has recently borrowed 3.3 billion US dollars from foreign capital markets, after two years of absence on this market, the amount representing the largest volume attracted in dollars,  a statement of the Ministry of Public Finance, submitted on Wednesday, to AGERPRES informs.

The funds related to this transaction were cashed on Tuesday, July 14.

“The Eurobond issue launched on July 7, 2020 by the Ministry of Public Finance enjoyed a special interest from investors, Romania returning to the USD market for the first time since 2018. The transaction reconfirmed Romania’s position as a sophisticated sovereign issuer on foreign capital markets, and some of the points of interest of the issue are: the first Eurobond transaction denominated in USD carried out by Romania in 2020, with a double tranche, one worth 1.3 billion US dollars, carrying a 10-year maturity and one worth 2 billion US dollars, carrying a 30-year maturity, after the two transactions made in the first half of the year which were denominated in EUR. It is the first transaction in US dollars made by Romania after 2 years of absence from this market, being the largest volume attracted on foreign capital markets in US dollars,” reads the MFP release.

“The success of the recent transaction shows the interest of investors in the securities issued by Romania in US dollars, as well as their confidence in our country’s ability to respond to the crisis generated by the COVID-19 pandemic and in the current Government’s medium-term economic recovery plan. The loan will be used to cover the growing financing needs, resulting from the budget deficit and the volume of public debt refinancing,” said Florin Citu, Minister of Public Finance.

The total value of the issue amounted to 3.3 billion US dollars, with a final subscription of 7.4 billion dollars, with the participation of over 400 investors.

The issue was made in two tranches, of which one worth 1.3 billion US dollars with a 10-year maturity, with a yield of 3.045% and an interest rate of 3.00% per annum and one worth 2 billion dollars with a maturity of 30 years, a yield of 4.00% and an interest rate of 4.00% per annum.

The transaction was brokered by Citigroup Global Markets Limited, Erste Group Bank AG, HSBC Bank PLC, ING Bank N.V., J.P. Morgan Securities PLC and Raiffeisen Bank International AG.




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