The orders for the bond issue–the first under the country’s EUR7 billion medium term notes (MTNs) program–were above EUR2 billion half an hour before auction closing, the people said.
“The pricing was set at 260 basis points over mid-swaps (280 basis points, or 2.8%), resulting a final yield of 5.4%,” the people said.
In March 2010, Romania sold five-year bonds worth a total EUR1 billion, at an annual yield of 5.17%.
Last year, Romania announced a three-year MTNs program worth up to EUR7 billion. However, the country didn’t attract any funds via the program so far.
Erste Group and Societe Generale are joint book-runners of the MTN program.