The funds raised will be used to cover the budget deficit and to refinance previous debts.
The interest rates for the two bond issues comprise the mid-swap rate plus 255 basis points and the mid-swap plus 415 basis points, that is 5.13% and 6.75%, respectively, as per data on Bloomberg platform and in line with calculations by Ziarul Financiar (ZF) daily.
Bond issues are intermediated by Citi, Erste, HSBC, JP Morgan, Raiffeisen Bank International and Societe Generale.
“The government gross financing needs for 2022 are revised at approximately RON148.6 billion and are set based on the projected budget deficit level of 5.8% of gross domestic product (GDP) (nearly RON80.1 billion), following the budget revision approved through Government Ordinance no. 19/2022 regarding the state budget revision for 2022, and based on the volume of debt to be refinanced in 2022, in the amount of nearly RON68.5 billion”, the ministry said in a statement.
The ministry raised $3.85 billion and EUR2.5 billion, respectively, so far in 2022. The Romanian State raised $2.1 billion in early January 2022 selling debt on external markets and also raised EUR2.5 billion at the end of January selling eurobonds. In May 2022, Romania raised $1.75 billion.