Romania raises EUR 3 bln and USD 2 bln with three foreign bond issues

The Ministry of Finance went out on February 25 for the first time this year to borrow on foreign markets and raised EUR 3 billion and USD 2 billion with three issues. The move follows political normalisation that also brought the yield on the secondary market for local currency long-term bonds to the 2-year minimum (6.33%).

The state raised EUR 2.25 billion with a new 7-year Eurobond maturing on March 4, 2033, and EUR 750 million by tapping the issue maturing on September 24, 2044. Separately, through a 10-year benchmark dollar issue maturing July 4, 2036, it borrowed USD 2 billion, according to Bloomberg and Ziarul Financiar.

In the case of 7-year euro bonds, the final interest rate was midswap (MS) rate plus 210 basis points (bp) – up from MS+295bp in a similar issue last October – while for the euro bonds maturing in 2044, the yield was set at MS+295bp. For the dollar bonds, the yield was the 10-year MS rate plus 170bp.

The intermediaries of the issue were BofA, Deutsche Bank, Erste, ING, Raiffeisen Bank International, and SocGen.

The issuance of foreign bonds by Romania is expected to diminish this year, after an intense activity last year. Gross Eurobond issuance is projected at around EUR 10 billion, against redemptions of just over EUR 3 billion.

In 2025, Romania issued EUR 11 billion and USD 5 billion in Eurobonds, with a net issuance of some EUR 13 billion – nearly twice the expected net issuance this year.

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