May 27 (SeeNews) - Romania's finance ministry said on Wednesday it has raised 3.3 billion euro ($3.62 billion) through the sale of 5-year and 10-year Eurobonds, with total demand reaching 12 billion euro.
Romania raised 1.3 billion euro from the sale of a new issue of 5-year government paper at a 2.750% interest rate, while an additional 2 billion euro was raised from the 10-year Eurobond at an interest rate of 3.624%, the finance ministry said in a press release.
This is the Romania's second sale of Eurobonds this year.
The 5-year Eurobonds had an yield of 2.793%, while the 10-year government securities yielded 3.624%.
Demand for both issues was strong with 585 orders placed worth almost 12 billion euro in total.
"The success of this transaction demonstrates once again the confidence that Romania enjoys from the international community of investors, even in this challenging period, generated by the COVID-19 pandemic. The government remains fully committed to the fight against the SARS-CoV-2 virus, and the loan will be used to cover the growing financing needs resulting from the budget deficit and the volume of public debt refinancing," finance minister Florin Citu said.
Geographically, the distribution of investors in the new 5-year Romanian Eurobond issue was: 22% from Great Britain and Ireland, 16% from southern Europe, 15% from Germany and Austria, 14% from the USA, 7% from Italy, 6% from Romania, 6% from central and eastern Europe, 5% from Switzerland, 4% from Asia, and 6% from France.
According to the type of investors, fund managers predominated with 56%, followed by commercial banks with 23%, pension funds and insurance companies with 11% and other types of investors with 6%.
The distribution of investors in the new 10-year Romanian Eurobond issue was: 35% from Great Britain and Ireland, 23% from the USA, 9% from Germany and Austria, 8% from Romania, 7% from southern Europe, 6% from central and eastern Europe, 5% from Switzerland, 2% from Italy, 2% from France, and 3% from Asia.
According to the type of investors, fund managers led with 70%, followed by commercial banks with 13%, investment funds with 11%, pension funds and insurance companies with 3%, and other types of investors with 3%.
The issue was managed by BNP Paribas, Erste Group Bank, ING Bank, J.P. Morgan Securities, Raiffeisen Bank International and UniCredit Bank.
In April, Romania raised by 10 billion euro to 41 billion euro the borrowing ceiling under its Medium Term Notes (MTN) programme for international markets during the 2020-2022 period. The country can borrow the funds at any time, in euro or in any other currency, read the decree published at the time by the Official Gazette.
Year-to-date, the finance ministry has sold some 31.2 billion lei ($7.1 billion/ 6.4 billion euro) and 150 million euro worth of government bills and bonds and has tapped foreign markets for a total of 6.3 billion euro.
($=0.9124 euro)