Romania reopens 2026, 2029 FX bonds and raises EUR 2 bln

Romania reopened two FX bonds maturing in 2026 and 2029, respectively and topped up the issues with another EUR 2 bln on January 30. The initial sizes of the issues were EUR 750 mln and EUR 850 mln, respectively, Profit.ro reported.

It is already the second time that Romania has tapped the foreign markets after it raised USD 4 bln (initially announced at USD 3.75 bln) with bonds with maturities of five, 10 and 30 years on January 7.

This time, the country placed EUR 600 mln for the issue maturing in 2026 and EUR 1.4 bln for the one maturing in 2029.

Romania’s 2026 bonds are quoted at mid-swap+170pp and those maturing in 2029, at mid-swap+310pp points, according to Bloomberg. The mid-swap rate for 3-year bonds in euros is currently 3.15%, and for 6-year bonds is 2.94%, resulting in actual yields of 4.85% for the 2026 bonds and 6% for those maturing in 2029.

It is estimated that this year, the gross funding requirement at the government level would reach approximately RON 160 bln (EUR 32 bln), including the RON 92 bln (EUR 18 bln) refinancing needs.

The 4.4%-of-GDP (EUR 14.3 bln) public budget deficit will be financed in the proportion of some 30% from internal sources and 70% from external sources.

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