Romania has attracted EUR 1.25bn from foreign markets at minimum historical costs

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Romania has attracted EUR 1.25 billion from foreign capital markets at minimum historical costs, by reopening two tranches of euro bonds issued in October 2015, the Ministry of Finance informed on Friday.
Of the total amount, EUR 750 million mature in 10 years and EUR 500 million has maturity of 20 years. The issue was oversubscribed almost two times, capital.ro states.
The amount was obtained at declining yields: from 2.845% to 2.55% for the 10-year tranche and from 3.93% to 3.90% for the 20-year tranche.
“The deal reinforces the very good perception and the investors’ confidence in Romanian economy in a volatile market context, characterised by many uncertainties. Amid strong demand, the yields for government bonds are decreasing both for government bonds issued on the domestic market, as well as for those issued on foreign markets. These developments lead to reducing the costs related to government debt along with extending the maturity of the debt portfolio,” Finance Minister Anca Dragu said.
The cumulative total offer amounted to EUR 2.3 billion from 220 orders.
According to the Ministry of Public Finance, the investment base was diversified both from the geographical point of view and by the type of investors for both tranches.
For the tranche maturing in 2025 the geographic distribution was: Romania (23%), UK (19%), USA (14%), Poland and other countries in Central and Eastern Europe (14%), Benelux (9%), Germany and Austria (8%), Italy (5%), Asia and Middle East (3%), Scandinavia (3%), other countries (2%). As types of investors, fund managers predominated (60%), followed by banks and private banks (22%), pension funds and insurance companies (11%), central banks (5%) and others (2 %).

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