Romania to Sell More International Bonds by End-June

Romania plans to return to international markets in the first part of this year and sell euro-denominated bonds after raising $2 billion in dollar securities yesterday, Budget Minister Liviu Voinea said.

The eastern European country aims to sell 10-year euro bonds once a “window of opportunity opens” as part of its strategy to lengthen debt maturity, Voinea said in a phone interview from Vienna today.

By raising $1 billion each in 10-year and 30-year bonds yesterday, Romania joined its regional peers, including Latvia and Poland, in taking advantage of reduced borrowing costs ahead of the Federal Reserve’s next meeting on Jan. 28-29. U.S. policy makers are forecast to trim monthly asset purchases further after cutting by $10 billion last month, a move that may reduce demand for emerging market debt.

“We are done with dollar denominated issues this year, but we will come to the market in the first half of 2014 with a 10-year, euro-denominated issue,” Voinea said. “Market conditions are not as favorable as they were last year from an international context point of view, but our job is to tighten the spread.”

Romania sold the 2024 bond at an yield of 215 basis points above similar-dated U.S. Treasuries and the 2044 one at 245 basis points over Treasuries.

With the money raised yesterday, Romania boosted a funding buffer at the Finance Ministry which now covers six months of budget-deficit financing, more than the four months required under an International Monetary Fund accord, Voinea said.

The yield on Romania’s Eurobonds due 2020 declined 13 basis points to 3.67 percent in Bucharest today. The leu gained 0.2 percent to 4.5228 against the euro, according to data compiled by Bloomberg.

Romania’s 2014 funding plan envisions 2 billion euros in foreign borrowing, according to a statement published on the Finance Ministry’s website on Jan. 13.

“It’s likely that we will top this plan, based on market conditions,” Voinea said today.

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