News

Romania attracts EUR 1.5 bln. by selling 7-year bonds on foreign markets

Romania yesterday attracted EUR 1.5 bln on foreign markets by launching an issue of EUR-denominated bonds with a maturity of 7 years, at an interest of 3.7 percent points over midswap, the reference indicator of the market, banking sources said for Mediafax. The midswap indicator that varies throughout the entire day was slightly above 1.34 pc at the time when the news became public, so the interest of the loan is slightly above 5 pc a year. According to banking sources, the total demand for bonds issued by Romania amounted to approximately EUR 4.5 bln. The Finance Ministry initially targeted an interest of 3.75 percent points above the midswap.The government recently gave the Finance Ministry a mandate to launch a new issue of eurobonds on capital markets abroad, worth minimum EUR 500 M and maximum EUR 1.5 bln – a value that will be decided depending the conditions of the market. The government appreciates that public finances will thus be protected against possible external shocks that might result in higher interests on the local market.

sursa:nineoclock