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Romania taps external markets, selling 746.7mn lei of June 2023 T-bonds

posted onMay 28, 2019

Romania's finance ministry sold on Monday (May 27) 746.7 million lei (EUR156.86 million)
of Treasury bonds maturing on 28 June, 2023, data from the country's central bank (BNR) showed.

Debt managers had planned to sell 500 million lei. The average accepted yield advanced to 4.33% compared to 4.11% achieved at the previous auction of government securities of the same issue held in April, according to BNR data.

So far this year, the finance ministry has sold roughly 17.5 billion lei and 506.7 million euros on the local market. It has also tapped international financial markets in March for 3 billion euros worth of 7, 15, and 30-year Eurobonds.

In particular, the Romanian state raised EUR1.15bn with the 7-year Eurobond, EUR500mn with the 15-year one and EUR1.35bn with its first 30-year Eurobond issue, following a 30-year external bond denominated in USD placed in 2014. 

Romanian bonds

The yields set in the three issues were set at 2.35% for the maturity of seven years (2.15 percentage points, or pp above mid-swap),  3.65% for the maturity of 15 years (2.85pp above mid-swap) and 4.65% for the maturity of 30 years (3.65pp above mid-swap)

It was the country’s largest combined issue ever coming on the back of a favourable investor mood regarding emerging economies. 

“The combined order books closed in excess of €8.5bn indicating strong market demand which allowed Romania to tighten the pricing for investors compared to initial guidance levels,” Raiffeisen analysts said in a note. “Our Buy recommendation stays intact despite relatively large supply this time as global central banks’ policies remain conducive for EM bond markets.” 

Citi, Erste, ING, JP Morgan and Société Générale  acted as intermediaries for the March 27 Eurobond issue. 

Last year, the finance ministry’s external debt issuance reached EUR2bn, in a double issue at the beginning of February, USD1.2bn in a placement on June 9 and EUR1.75bn in a Eurobond issue in October.