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Romania raises 1.75 bln euro in Eurobonds sale

Romania raises 1.75 bln euro in Eurobonds sale Romania's finance ministry

BUCHAREST (Romania), October 8 (SeeNews) - Romania's finance ministry said it has raised 1.75 billion euro ($2.01 billion) through the sale of 10-year and 20-year Eurobonds, with total demand reaching 2.8 billion euro.

This is the Romania's second sale of Eurobonds this year.

Romania raised 1.15 billion euro from the sale of a new issue of 10-year government paper at 2.875%, while an additional 600 million euro was raised from the 2038 Eurobond reopening at 4.125%, the finance ministry said in a press release on Saturday.

Demand for both issues was strong with 265 orders placed worth almost 2.8 billion euro in total. 

"The over-subscription of the two tranches of the issue, as well as the diversification of the investment base and the geographical distribution reflect the long-term confidence in the economic development of our country," finance minister Eugen Teodorovici said in the statement.

Geographically, the distribution of investors in the new 10-year Romanian Eurobond issue was: 24% from the UK, 20% from Germany and Austria, 15% from central and eastern Europe, 11% from Romania, 9% from southern Europe, 6% from Scandinavia, 6% from France, 4% from Switzerland, 3% from Benelux, 1% from the USA and 1% from other regions.

According to the type of investors, fund managers predominated with 62%, followed by commercial banks with 24%, pension funds and insurance companies with 11% and other types of investors with 3%.

The distribution of investors in the new 20-year Romanian Eurobond issue was: 33% from the UK, 24% from Germany and Austria, 11% from Scandinavia, 9% from Switzerland, 7% from central and eastern Europe, 4% from Romania, 3% from France, 3% from the USA, 3% from Southern Europe, 2% from Benelux and 1% from other regions.

According to the type of investors, fund managers predominated with 67%, followed by commercial banks with 17%, pension funds and insurance companies with 10%, central banks with 2% and other types of investors with 4%.

The issue was managed by BNP Paribas, Erste Group Bank AG, ING Bank NV și Société Générale and Unicredit.

At the end of 2017, the finance ministry said it plans to sell 8 billion euro worth of Eurobonds on the international markets in 2018 and 2019.

Since the beginning of 2018, the finance ministry has sold roughly 29.3 billion lei ($7.2 billion/ 6.2 billion euro) and has raised 2 billion euro on international markets from the sale of 2028 and 2030 Eurobonds, as well as $1.2 billion of 2048 dollar bonds.

($=0.8703 euro)

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