Romania borrows from international markets at higher costs

Romania’s Finance Ministry borrowed EUR 1.75 billion from the international markets through two Eurobond issues with maturities of 10 and 20 years. The Romanian state drew EUR 1.15 billion by selling 10-year bonds with an interest of 2.875% per year and EUR 600 million from 20-year bonds with an interest rate of 4.125% per year, the ministry announced. “The issue clearly reflects the positive perception of investors and financial markets about Romania’s medium- and long-term evolution,” the Finance Ministry announced in a press release. However, the borrowing costs were higher than in February and the Finance Ministry only drew 70% of the planned amount, of EUR 2.5 billion. In February, Romania sold 12-year bonds at a cost of 2.5% per year and 20-year bonds at 3.375% per year, according to Hotnews.ro. The Eurobond issue was managed by BNP Paribas, Erste Group Bank, ING Bank, Société Générale and Unicredit. editor@romania-insider.com