Romanian natural gas producer Romgaz (BVB: SNG) launched a EUR 500 million bond with a maturity of six years and a fixed coupon on October 28.
This is Romgaz’s second exit on the external capital markets, after the success of the previous EUR 500 million issue, with a five-year maturity, in October 2024. Both bonds are largely aimed at funding the Neptun Deep offshore project, where the company holds a 50% stake
The issue, maturing in November 2031, was initiated at 285 basis points (bp) above the seven-year mid-swap (MS) benchmark, corresponding to a yield of approximately 5.5%.
Amid strong demand of some EUR 4.5 billion, the yield eventually decreased to 235 bp above MS, and thus the bond was launched with a 4.75% fixed coupon, according to Ziarul Financiar, citing Bloomberg data. The cost paid by the company, controlled by the Romanian state, is thus lower than that paid by the Government itself for the same maturity, the daily commented.
The issue is intended exclusively for professional investors, has a nominal value of EUR 100,000 and multiples of EUR 1,000, and is senior guaranteed. The transaction is coordinated by an international consortium of banks consisting of BT Capital Partners, Citi, Erste Group, JP Morgan, Raiffeisen Bank International, and UniCredit.
On October 27, after the January-September operational results were announced, Romgaz shares rose by 2.9% exceeding the RON 10 threshold for the first time, leading to a market capitalization of RON 38.6 billion. The company’s shares gained another 2.5% on October 28 during the FX bond issue, bringing the company’s capitalization to RON 38.5 billion (EUR 7.6 billion)..
According to the preliminary report for January-September, total hydrocarbon production registered an increase of 0.61% y/y, to 23.96 million barrels of oil equivalent (boe).
Romgaz reported a consolidated net profit of RON 1.68 billion in the first half of 2025, down 8.6% y/y. Its revenues increased by 7.1% y/y, to RON 4.51 billion, driven by the increase in gas deliveries by 12.3%.
The Romanian state, through the Ministry of Energy, owns 70% of the company’s capital.
iulian@romania-insider.com
(Photo source: Inquam Photos / Adel Al-Haddad)
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