Romania successfully issues 10-year bond on US market

The Finance Ministry has raised USD 1.5 billion from the issuance of 10-year bonds at a yield of 6.87 percent, in its first dollar-denominated debt offering, although bidding for the offer amounted to USD 7 billion. Banking giants Citigroup, Deutsche Bank and HSBC Holdings handled the deal.

“The investors’ interest was huge, considering this is Romania’s first dollar-bond sale, and it’s a clear signal of confidence in Romania’s fiscal measures,” said Bogdan Dragoi, state secretary in the Public Finance Ministry, quoted by Bloomberg.The government will use the resulting sums to finance the budget deficit and repay maturing debt.

“Romania has the lowest debt per-capita out of all EU member states, at EUR 4,570, and we aren’t planning to repay it fast,” said the Romanian president, Train Basescu. “We will refinance the current debt and avoid widening it, so Romania can develop nicely.”

The country is pursuing a EUR 7 billion three-year program to tap international markets. It started last June when EUR 1.5 billion was raised by issuing five-year euro-denominated bonds.
Romania is rated at Baa3 by Moody’s, and BBB- by Fitch Ratings. Standard & Poor’s rates Romania below investment grade at BB+.  All three ratings agencies see Romania’s economic outlook as stable. 

Ovidiu Posirca

Read more about

Creating Social Media Posts That Drive Traffic To Your Website

read more