The eastern European country Wednesday raised EUR1.5 billion at its first new international eurobond issue in 16 months. The issue drew EUR4.7 billion in bids.
The bond “will alleviate the upward pressure on yields for leu-denominated notes and enable the ministry to issue more long-term debt on the domestic market,” Erste said in a short note.
“We foresee five-year yields at 6.8% in December,” it added.
The ministry plans to sell state paper worth 3.55 billion lei (EUR783 million) in November, slightly up from RON3.13 billion sold a month earlier. The institution has scheduled six medium- and long-term debt auctions this month.
So far in 2012, Romania sold on the local market RON46.6 billion in leu-denominated state notes and EUR421.5 million via a tap of an existing foreign currency bond due 2015.
Additionally, Romania sold $2.25 billion in US dollar-denominated bonds at two auctions in the US and another EUR2.25 billion in euro-denominated notes. (EUR1=RON4.5236)