Romania started issuing its first green bonds

Romania launched, on Thursday, its first issue of green bonds, a long-awaited measure aimed at diversifying the investor base in the context of growing demand for green bonds, Reuters announced. The 12-year green bonds have a spread of 345 basis points over mid-swaps, and the final price would be set on Thursday evening.
At the same time,  Romania also issues seven-year conventional bonds, and the offers for the two types of bonds exceeded 10 billion euros. Romania spent more than a year preparing the necessary framework for issuing green bonds, and the head of the Treasury, Ştefan Nanu, said in December that Romania plans to issue its first green bonds in the first half of 2024. 
According to Nanu, Romania intends to become a frequent annual issuer of green bonds and that he will try to keep the issues at a small volume.
Romania, a country that already has several renewable energy projects lined up to benefit from EU funding, will use the green bond framework to finance projects in the field of green transport, improving the energy efficiency of buildings and reforestation, among others.
The officials in charge of managing the state debt plan to reduce the net issuance of Eurobonds to 6 billion euros this year, from 9.5 billion euros in 2023.
In parallel, the Bucharest Government wants to reduce the deficit budget, up to 5% of GDP, from 5.7% of GDP last year.
Finance sold significantly more government bonds than planned in January, including four billion dollars worth of Eurobonds maturing in 2029 and 2034, taking advantage of strong demand in Europe.
demandEurobondsgreen bondsmid-swapsRomania
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