Romania raised EUR 500 million through a 5-year private external placement with the help of Bank of America as an arranger, towards the end of September, according to Ministry of Finance data consulted by Ziarul Financiar. The interest was set at 6M Euribor plus 2pp, resulting in an interest of about 4%.
This is the seventh loan of this kind since 2025. The cumulative value of the financing taken through the seven external private placements so far thus reached EUR 3.3 billion.
Romania’s largest loan through external private placement, of EUR 1 billion, settled in early August, also had Bank of America as an arranger.
Previously, alongside Bank of America and Goldman Sachs, Deutsche Bank AG, ING Bank, and UniCredit Bank were on the list of banks that were involved in the previous six loans made by Romania through private placements on external markets.
The involvement of international banking giants brings added credibility to Romania on foreign markets, which is very necessary considering the fact that the Ministry of Finance needs significant financial resources to finance the budget deficit of 8.4% of GDP, as well as to refinance the public debt, which has exceeded RON 1,000 billion (EUR 200 billion), while also needing large investments related to infrastructure, the energy sector and other important projects.
External private placement is the Ministry of Finance’s new way of borrowing, in addition to bond issues in euros and dollars.
iulian@romania-insider.com
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