Romania raises EUR 1.25 billion in its second international bond sale this year

Newsroom 16/04/2014 | 00:35

Romania’s Finance Ministry on Tuesday raised EUR 1.25 billion at a 10-year Eurobond sale in international markets at an annual yield of 3.7 percent, according  to Mediafax.

The government sold 10-year bonds today at a yield of 200 basis points above mid-swaps, the equivalent of 3.7 percent, the lowest on record for the country, Budget Minister Liviu Voinea said in a phone interview. Citigroup Inc. (C), ING Groep NV, Societe Generale SA (GLE) and UniCredit SpA (UCG) managed the sale.

“We’ve completed our international funding needs for this year eight months ahead of schedule with today’s sale,” Voinea said. “This doesn’t mean that we won’t issue again if market opportunities allow, but it will be to pre-finance 2015.”

The yield on Romania’s eurobonds due in 2020 fell 2 basis points to 3.097 percent at 8:14 p.m. in Bucharest, a record low, according to data compiled by Bloomberg.

The latest foreign bond deal happened in January, when the Ministry of Finance raised EUR 2 billion. The country sold 30-year bonds, the longest maturity yet, and 10-year bonds at yields 245 basis points and 215 basis points higher than similar-dated U.S. Treasuries, respectively.

Governments and companies from the developing world are increasingly turning to euro debt markets, lured by the falling costs of borrowing there and European investors’ clamour for relatively higher returns. Earlier in the month, Turkey issued its first euro bond of the year, selling EUR 1 billion(USD 1.38 billion) of nine-year bonds which garnered strong demand from international investors, writes The Wall Street Journal.

 

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