Romania cashes in EUR 3 bln Eurobond, plans another one

Romania’s Finance Ministry cashed on April 4 the EUR 3 billion from the Eurobond sale on international markets from March 27.

The funds will consolidate the existing reserve in the State Treasury to a level that covers over seven months of the 2019 funding requirement, the ministry stated.

The ministry also indicated that it plans to draw a total of EUR 4.25 billion from the foreign market this year, meaning that another EUR 1.25 billion Eurobond is expected in the second half of the year. The EUR 3 bln funds already drained are needed for this year’s deficit financing, while the other issue later this year will prepare the funding of next year’s deficit, the ministry explained in its press release.

Romania raised, on March 27, EUR 3 billion (1.5% of GDP) in three Eurobonds with maturities of 7 years (EUR 1.15 billion), 15 years (EUR 500 million), and 30 years (EUR 1.35 billion). The yields in the three issues were 2.35% (2.15 percentage points, or pp above mid-swap) for the 7-year maturity, 3.65% (2.85pp above mid-swap) for the 15-year maturity, and 4.65% (3.65pp above mid-swap) for the 30-year maturity.

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