RCS&RDS raised EUR100 million more than initially planned because of solid demand, as investors were willing to invest up to EUR1 billion. The bond issue has a seven-year maturity and will help alleviate some of the debt burden of the company, which is heavily indebted to banks.
The company controlled by businessman Zoltan Teszari has made other attempts to borrow money from international markets this year but did not find any window of opportunity and was not happy with the price offers.
The EUR450 million bond issue had JP Morgan as lead manager and Erste Group, Societe Generale and UniCredit as arrangers. This is the highest loan taken by a local corporate entity in 2013 and also the only corporate bond issue in euros released by a Romanian company.
The government sold EUR500 million bonds with a seven-year maturity at a 4.15% yield this month, which is an all-time low. Romania has a sovereign rating of BB+ from Standard&Poor’s, while RCS is rated B+, because of its low profit, fierce competition and exposure to Romania and Hungary, two small economies with volatile currencies.
(English version by Loredana Fratila-Cristescu)