The roadshow, aiming to take the pulse of the markets and to inform investors, will take place between June 6th and June 10th and, in addition to London, will include European financial centers such as Amsterdam, Frankfurt, Munich and Paris.
The Finance Ministry is set to open the program with an issue of notes with a “cautious” five-year maturity. Market sources say that had it sought to get financing with 7 or 10-year maturities, the price would have been too high because Romania does not have a history of long maturities on international markets.
“The billion euros are all but secured, as things currently stand. The circumstances are favorable in terms of the development of the elements that will make up the price, let’s hope no shock involving Greece emerges next week,” say the cited sources.
Romania’s CDS (the price of insuring the country’s debt against default) revolves around 230-235 base points, visibly lower than Hungary’s and Croatia’s, though much higher than Poland’s and Turkey’s.
“Romania could sell securities worth around EUR1 billion at an interest of around 5.3-5.4% a year, depending on the risk premium demanded by investors.”
The top two banks in terms of their exposure to Romania – Societe Generale (BRD’s majority shareholder) and Erste Group (BCR’s majority shareholder) were hired in August last year to manage the issue.