Romania plans second bond sale this year

Romania plans to raise at least EUR 1 billion from a second bond issue this year in a move to cover its budget deficit, reported Bloomberg newswire, quoting Liviu Voinea, the budget minister.

The country aims to raise EUR 2.5 billion on the international markets this year, issuing USD 1.5 billion at a fresh low yield of 4.5 percent in February.

“We will issue this year because it’s part of our multi-year strategy, but we are not under pressure to do so today or tomorrow,” said Voinea. “We’ll find the best window of opportunity.”

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The yield of Romania’s 2019 eurobonds rose yesterday by two basis points to 4.16 percent, up from a fresh low of 3.4 percent in May. Meanwhile, similar-maturity bonds from Poland yielded at 2.14 percent.

Vlad Muscalu, chief economist at ING Bank Romania, commented the government will issue the bonds after signing a third precautionary deal with the IMF, so as to boost investors’ sentiment.

Voinea said the IMF’s board of directors will discuss Romania’s new precautionary loan in the last 10 days of September.

Ovidiu Posirca