Romania to Raise 2 Billion Euros in 10, 20-Year Debt

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  • Finance Ministry is offering longest-maturity bond yet
  • Citi, HSBC, Raiffeisen, UniCredit acting as sale managers

Romania is selling 2 billion euros ($2.3 billion) of Eurobonds, following regional peers Poland and Lithuania into the international debt markets and offering its longest-ever maturities in the common currency.

The European Union’s second-poorest nation is offering 20-year euro-denominated bonds at 245 basis points above mid-swaps and 10-year bonds at 190 basis points above mid-swaps, according to a person with knowledge of the offering who isn’t authorized to speak publicly and asked not to be identified. The Finance Ministry is selling 750 million euros of 20-year bonds and 1.25 billion euros of 10-year debt.

“I guess they’ll use the funds they raised today to also pre-finance 2016 and I don’t think Romania will return to the markets this year,” Martin Marinov, a money manager overseeing $1 billion of emerging-market debt at Raiffeisen Kapitalanalage GmbH, said by e-mail.

Romania, whose economic growth has topped 3 percent for the last two quarters, is taking advantage of rising appetite for emerging-market debt and plans to raise about 2 billion euros on international markets this year. While its bond yields have fallen back after hitting a record high in June on tensions over Greece’s bailout, the government is selling debt without the cushion of an International Monetary Fund safety net for the first time since 2009.

Citigroup Inc, HSBC Bank PLC, Raiffeisen Bank International AG and UniCredit SpA are managing the sale, Romania’s first of 2015, the person said.

The yield on Romania’s 2024 Eurobonds rose seven basis points to 2.67 percent as of 4 p.m. in Bucharest, the highest since Sept. 30, after reaching a record 3.03 percent on June 8, according to data compiled by Bloomberg.

Romania’s Finance Ministry didn’t immediately respond to phone requests for comment on the bond sale.