Romania raises EUR 1.5 billion in bond issue at historic low yield

Newsroom 22/10/2014 | 13:10

The country has attracted EUR 1.5 billion on the international markets by issuing 10-year euro-denominated bonds at a fresh low yield of 2.97 percent in an oversubscribed offering, announced the government.

The bond issue will partially cover Romania’s external financing needs for 2015, in the same time consolidating the country’s foreign exchange reserves. In the last bond issue in April, the yield for Romanian bonds was 3.7 percent, with the country raising EUR 1.25 billion.

The distribution of the bonds on categories of investors sees fund managers holding the biggest share of the offering (62 percent), while insurance/pension funds have 25 percent, banks 13 percent. Central banks and other types of investors have 4 percent.

Most of the demand came from investors based in Germany/Austria (23 percent), UK (18 percent), CEE (12 percent), and Italy (10 percent). Investors in Romania got 10 percent of the offering, US (9 percent), rest of Europe (9 percent), Benelux (5 percent), Asia and Middle East (4 percent).

The bond issue was managed by HSBC, Raiffeisen Bank International, Societe Generale and UniCredit Bank.

Ovidiu Posirca

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