The maximum yield offered was less than 7%, 6.93% to be precise, the lowest financing cost this year for a residual maturity of approximately ten years.
Specifically, the Ministry exchanged bonds maturing on April 22, 2026 and June 24, 2026 with a new series of bonds with a much longer maturity, April 25, 2035, in amount of RON450.65 million.
“Through this type of operation, carried out every two months, the Finance Ministry aims to reduce the refinancing risk, which can influence the cost of government borrowing. This action is in line with the goals set out in the Government Public Debt Management Strategy,” the Finance Ministry said.
The operation met with robust demand from investors, which reached RON836.3 million. Following the auction, the Finance Ministry allocated RON450 million and managed to obtain a maximum yield of 6.93%. Although still high, this yield (which represents the cost paid by the government for the loan) is the lowest obtained for an about ten-year residual maturity this year, the Finance Ministry added.
“This transaction is an important component of our risk management strategy. Achieving a long-term borrowing cost of 6.93%—the lowest level this year, although still high—is not a random event, but proof that fiscal discipline and the commitments made in dialogue with the European Commission are validated by the markets. Through pre-financing and extending the maturity of our debt, we are making sure to avoid additional pressure on government costs, transforming investor confidence into concrete and sustainable benefits for the public budget,” Finance Minister Alexandru Nazare said.
(English version by Loredana Fratila-Cristescu)