The ministry sells euro-denominated bonds with 12 and 20-year maturities.
Romania borrowed EUR2 billion with a 12-year maturity, with investors allocating EUR6 billion. The interest for this tranche reaches 195 basis points over mid-swap, according to Ziarului Financiar.
Also, Romania borrowed EUR1.5 billion with a 20-year maturity, with investors allocating EUR4 billion. The interest for this tranche reaches 235 basis points over mid-swap. In both cases, the interest rates are slightly lower than those announced Wednesday morning.
The ministry on Wednesday said Romania needs to borrow RON131 billion in 2021, on the local and external markets, to cover the country’s budget deficit estimated at approximately RON80 billion and to refinance the country’s public debt, in the amount of approximately RON51 billion.
To cover the budget gap estimated at 7% of the gross domestic product, the Romanian government plans to borrow 48% from the domestic market and 52% from external markets.
Bloomberg data show that BNPP, Citi, HSBC, Raiffeisen, Societe Generale, UniCredit acted as bookrunners for the Eurobond financing.