Romania's Romgaz prepares new Eurobond issue

The state-owned company Romgaz (stock exchange symbol SNG), the producer and supplier of natural gas, convened its shareholders on October 20 to decide on the issuance of a new tranche of bonds or the supplementation of the inaugural EUR 500 million tranche, massively oversubscribed in 2024, according to a report to investors, quoted by Ziarul Financiar.

Răzvan Popescu, CEO of Romgaz, stated at the ZF Capital Markets Summit conference in March that the company he leads will probably launch a new bond issue of 500 million euros in the fall and another one in 2026.

"We have the largest investment program, over EUR 1 billion, and 75% goes to Neptun Deep. We cannot finance only from current activity (...) There is competition from Fidelis, and we will have to reevaluate the interest rate level," the CEO said in the spring.

Romgaz listed its first bond issue on the Bucharest Stock Exchange in November 2024, worth EUR 500 million with a 4.75% coupon. As the bonds were issued under a private placement and are not liquid at the BVB, it remains unclear how much Romgaz is actually paying for the financing.

The company managed to attract funds through a massively oversubscribed issue, for which investor demand reached almost 6 billion euros.

It was the first tranche of five-year international bonds from the EMTN (Euro Medium Term Notes) program, which will allow the company to issue bonds with a value of up to EUR 1.5 billion.

(Photo source: Inquam Photos/Adel Al-Haddad)