Romania’s Ministry of Finance has raised approximately EUR 4.7 billion from international financial markets, in the country’s first operation on the foreign markets in 2026, as announced on March 9. The bonds were placed on February 25, just three days before the outbreak of the Middle East conflict, followed by a sudden rise in the borrowing cost. 

On March 9, the interest rate on 10-year RON Romanian Government bonds reached 7.1%, over 70 percentage points higher than the 6.3% – the past years’ minimum reached on February 27.

With the February 25 operation, Romania covered almost half of the external financing needs estimated to be achieved through Eurobond issuance for 2026, according to the Finance Ministry.

The ministry said investor interest was very high, with total demand for Romanian bonds exceeding EUR 15.5 billion, more than three times the target size of the issues. This allowed Romania to obtain better financing conditions, i.e., lower interest rates than initially estimated and even below market quotations at the time.

Thus, Romania, through the Ministry of Finance, accessed a tranche of EUR 2.25 billion with a maturity of 7 years (2033), a new tranche of USD 2 billion with a maturity of 10 years (July 2036), and EUR 750 million representing the reopening of the issue maturing in September 2044. The transaction was concluded with a yield of 4.638% and a coupon of 4.625% for the 7-year EUR tranche, a yield of 5.750% and a coupon of 5.750% for the 10-year USD tranche, and a yield of 5.966% and a coupon of 6.000% for the reopening of the EUR-denominated issue maturing in 2044.

"Romania's first Eurobond issuance in 2026 was a real success and shows once again the confidence of international investors in the Romanian economy and in the measures taken by the Government to stabilise public finances," said finance minister Alexandru Nazare.

The funds attracted will be used to finance the budget deficit and refinance older state loans, as well as to consolidate the foreign exchange financial reserve at the Treasury's disposal.

Several hundred international investors participated in the issue through more than 500 cumulative orders in all 3 tranches, including official international institutions and central banks, in addition to investment funds, banks and pension and insurance funds, covering different geographical regions (Europe, America, Asia and the Middle East), which confirms the high and diversified interest in government securities issued by Romania.

The transaction was brokered by BofA Securities Europe SA, Deutsche Bank Aktiengesellschaft, Erste Group Bank AG, ING Bank NV, Raiffeisen Bank International AG, and Société Générale.

iulian@romania-insider.com

(Photo source: George Oprea/Dreamstime.com)