Romania raises EUR 1 billion from new bond sale

Romania raises EUR 1 billion from bond sale on international market

Newsroom 20/05/2016 | 14:41

The Ministry of Finance said that Romania has raised EUR 1 billion in a bond sale that was oversubscribed two times.

The bonds had a 12-year maturity and were sold at a yield of 2.992 percent. The coupon was 2.875 percent.

“The transaction confirms the good perception and the confidence of investors in the economic fundamentals of the Romanian economy on the back of a volatile environment. The fact that the issuance was oversubscribed shows Romania is on an ascending economic path, registering on the biggest growth rates in the EU, while being stable, in the same time, from the fiscal and budget perspective,” said the minister of finance, Anca Dragu.

The investors that bought the shares came from Germany and Austria (20 percent), Romania (19 percent), Great Britain (13 percent), Central and Eastern Europe (11 percent), Scandinavia (9 percent), the US (7 percent), France and Benelux (7 percent), Italy and other states in southern Europe (7 percent) Switzerland (6 percent), other countries (1 percent).

Asset managers represented 52 percent of the investors, while banks and private banks had a share of 26 percent. The pension and insurance funds accounted for 21 percent of the buyers.