The Ministry of Finance said on Wednesday that Romania has raised USD 2 billion from two bond sales that were oversubscribed, and that investors are starting to buy into the country’s bonds with longer maturities.
Romania has raised USD 1 billion from a 10-year bond issue that yielded at 5 percent and had a coupon of 4.9 percent. In addition, the country has issued for the first time bonds with a 30-year maturity that yielded at 6.2 percent at had a coupon of 6.1 percent, raising another USD 1 billion. The offering was oversubscribed five times.
“Raising USD 2 billion from a single operation represents a pre-financing opportunity on the back of expectations for growing interest rates on the American market,” said the ministry in a statement.
The reference interest rate for 10-year bonds issued by the US Treasury gave rose by 86 basis points from February 2013, when Romania raised USD 1.5 billion in a separate issue. Meanwhile, Romania’s risk premium fell 36 basis points on the back of positive macroeconomic results, said the ministry.
The bond issue was managed by BNP Paribas, Citibank and JP Morgan.
Ovidiu Posirca