Romania's Romgaz launches EUR 500 mln FX bond amid massive demand

Romanian natural gas group Romgaz (BVB: SNG), controlled by the state as the majority shareholder, successfully raised EUR 500 mln in an FX senior unsecured bond with a 5-year maturity, largely aimed to fund Neptun Deep offshore project where the company holds a 50% stake, amid an abundant volume of orders placed by investors, according to Economica.net.

The investors placed orders for over EUR 5.9 bln of FX bonds.

The issue was launched at MS+255 (4.776%), 55 basis points below the initial indicative level, according to the company's CEO, Razvan Popescu.

"The capital raised will be essential in supporting key projects such as Neptun Deep and in further strengthening our leadership position in the energy sector," Razvan Popescu commented.

In 2023, the final investment decision was made for the development of the Neptun Deep offshore project, with potential recoverable reserves of 100 billion cubic meters of gas, in which Romgaz is a partner alongside OMV Petrom. Estimated investments for the development phase of the project are up to EUR 4 bln, of which Romgaz must contribute EUR 2 bln.

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