Romania reportedly hires intermediaries for Samurai bonds

Romania is preparing to sell its first bonds on the Japanese market as the government tries to diversify funding sources to cover a growing budget deficit, according to Bloomberg and Ziarul Financiar.

The move would follow similar steps of Slovenia (JPY 50 billion or EUR 311 million) and Hungary (JPY 40 billion or EUR 250 million) on the Japanese market in August and, respectively, September of this year.

Hungary paid a 1.1% coupon for the three-year maturity, and Slovenia 0.75%. The longer maturities involved higher coupons, namely 2.35% for Hungary (ten years) and 1.1% for Slovenia (five years).

Thus, the Bucharest government mandated Daiwa Securities Group Inc., Mizuho Financial Group Inc., Nomura Holdings Inc., and SMBC Nikko Securities Inc. as joint lead managers for potential green bonds denominated in yen, according to sources familiar with the deal consulted by Bloomberg.

Romania reportedly seeks maturities between three and 20 years. Hungary opted for 3 and 10 years, while Slovenia issued 3- and 5-year maturing bonds.

Romania expects the transaction to be launched in the near future, depending on market conditions.

The government in Bucharest is thus seeking to widen its investor base after its gross financing requirement for this year rose significantly by some RON 37 billion (EUR 8 billion) to RON 217 billion due to the fiscal slippage to at least 6.9% from 5% of GDP initially estimated.

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