December 3 (SeeNews) - Romania's finance ministry said that it has raised 2.5 billion euro ($3.01 billion) through the sale of nine-year and 20-year Eurobonds, with total demand reaching 11.6 billion euro.
Romania raised 1 billion euro from the sale of a new issue of nine-year government paper at a 1.375% interest rate, while an additional 1.5 billion euro was raised from the sale of 20-year Eurobonds at an interest rate of 2.635%, the finance ministry said in a press release on Wednesday. evening.
This is the Romania's third and last sale of Eurobonds this year.
The nine-year Eurobonds yielded 1.468%, while the 20-year government securities yielded 2.650%.
Demand for both issues was strong with 650 orders placed worth almost 11.6 billion euro in total.
"Although we are going through an extremely difficult period, marked by the COVID-19 pandemic, through the success of this last transaction in 2020, Romania proves that it is still enjoying the trust of international investors. The loan will be used to cover increasing financing needs as a result of the growing budget deficit and public debt refinancing, but also to cover pre-financing needs for 2021," finance minister Florin Citu noted.
Geographically, the distribution of investors in the new nine-year Romanian Eurobond issue was: 27% from the USA, 19% from Great Britain, 19% from Romania, 9% from Germany, 7% from the rest of Central and Eastern Europe (CEE), 55 from Nordic countries, 5% from Austria and Switzerland, 3% from France, 3% from Southern Europe, 2% from Benelux and 1% from Asia.
According to the type of investors, fund managers predominated with 67%, followed by commercial banks with 22%, pension funds and insurance companies with 5%, and other types of investors with 3%.
The distribution of investors in the new 20-year Romanian Eurobond issue was: 43% from Great Britain and Ireland, 18% from the USA, 11% from Romania, 5% from Germany, 5% from Switzerland and Austria, 4% from Nordic countries, 3% from France, 3% from the rest of CEE region, 3% from Southern Europe, 3% from Benelux countries, 1% from Asia and 1% from other regions.
According to the type of investors, fund managers led with 75%, followed by commercial banks with 13%, pension funds and insurance companies with 9%, investment funds with 5%, official institutions and central banks with 3%, and other types of investors with 1%.
Year-to-date, the finance ministry has sold some 68 billion lei ($17 billion/ 14 billion euro) and 2.3 billion euro worth of domestic bills and bonds. It has also sold 8.8 billion euro and $3.3 billion from worth of debt paper on international markets.
($=0.8299 euro)