Banks offered RON323 million, but the ministry wasn’t satisfied with the yield level, central bank data showed. The bond has an outstanding maturity of nine years.
It was the second unsuccessful debt sale this month, as investors shun away from emerging market assets. The high yields also prompted the ministry to reschedule an auction to sell RON1.2 billion of one-year bills.
Last week, the ministry raised a planned RON800 million in a reopening of its 10-year bond due June 2017, at an average yield of 4.06% a year.
The ministry plans to sell debt in local currency worth RON4.06 billion in February. Also this month, the institution hopes to raise at least EUR200 million at a five-year Eurobond sale on February 20.
So far in 2014, Romania sold RON5.74 billion in leu-denominated notes and EUR278.7 million at a euro-denominated auction on the local market. The ministry also tapped international markets for $2 billion at a two-part US dollar bond issue in January. (EUR1=RON4.4926)