Erste about issuance of bonds of Romania: Will reduce the pressure on the domestic market yields

The success of the euro bond issue will also help, the Ministry of finance to borrow on longer term domestically, says Austrian Erste group analysts.

“The recent issue of eurobonduri will reduce the pressure exerted on growth yield for bonds denominated in lei and will allow the Ministry of finance to issue longer-term debt domestically. We expect yields of 6.8% for 5 years bonds in December “, shown in a note of Erste.

The Finance Ministry drew Wednesday, 1.5 billion on foreign markets by launching a bond issue denominated in euros with a maturity of seven years, at a margin of 3.7 percentage points over the midswap and an output set at just over 5% per annum.

Arrangers bond issue denominated in euros have been Barclays, Citigroup, Deutsche Bank and HSBC.

The rating agency Fitch Ratings has assigned Thursday broadcast rating BBB bond, similar to the rating of the country, which has a stable Outlook.

The Government has recently mandated the Ministry of finance to launch a show of euroobligaţiuni capital on foreign markets, worth at least 500 million euros and a maximum of 1.5 billion euros, the value that is to be determined according to market conditions.

The Government said then that the public finances will be protected so any external shocks which might increase interest on the domestic market. In early November will reach a maturity issue bonds denominated in foreign currency of 793,8 million euro.

Previously broadcast on Wednesday, the latest operation conducted by Romania on foreign markets was held in early September, when Finances have attracted 750 million euros by reopening the issue of bonds denominated in euros with maturity in June 2018, the titles of having an output of 5,15%.

Thus, the Ministry of Finance has lent this year 46,6 billion lei in the local market. This amount is supplemented with shows in currency of 2.67 billion and 2.25 billion dollars, through the securities market.

source :


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