{"id":186,"date":"2024-05-22T06:15:22","date_gmt":"2024-05-22T06:15:22","guid":{"rendered":"https:\/\/ofero.news\/?p=186"},"modified":"2024-05-22T06:15:22","modified_gmt":"2024-05-22T06:15:22","slug":"romania-is-launching-third-fx-bond-issue-this-year","status":"publish","type":"post","link":"https:\/\/ofero.news\/?p=186","title":{"rendered":"Romania is launching third FX bond issue this year"},"content":{"rendered":"<p>Romania is getting close to completing its foreign debt sale plan for the year with a new Eurobond sale as the risk of a wider-than-expected budget deficit is expected to boost funding costs, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-05-21\/romania-on-track-to-complete-fx-debt-sale-plan-with-euro-deal?mc_cid=af1c44a59e&amp;mc_eid=cd1f92f96c\" target=\"_blank\" rel=\"noopener\">Bloomberg<\/a> announced on May 21.<\/p>\n<p>The country, which has already raised EUR 7.9 billion in dollar and euro-denominated FX bonds from international markets this year, is offering fix-coupon bonds due 2032 and 2037.<\/p>\n<p>The indicative cumulated volume for the FX bonds was announced at EUR 3 billion, and this is expected to be the final outcome, according to the latest information.<\/p>\n<p>The government of Romania last week took steps to increase the ceiling of the Medium Term Note (MTN) scheme by EUR 7 billion to EUR 75 billion, citing the EUR 8.5 billion financing needs in 2025 but also another EUR 0.6 billion-1.6 billion issues this year and potentially EUR 1 billion in case not all the Resilience Facility money (EUR 2 billion in loans) are disbursed in 2024.<\/p>\n<p>FX bonds may be issued to pre-finance next year\u2019s budget deficit, the Finance Ministry implied. But the higher MTN ceiling will also cushion potential fiscal slippage this year &#8211; a scenario not mentioned by the government nevertheless very likely.<\/p>\n<p>The volumes subscribed by investors in Romania\u2019s ongoing FX bond issue amount to EUR 9 billion, and the cost is the midswap rate + 255 basis points (bp) for the 8-year bond (midswap being at 2.78% currently) and midswap + 290bp for the for 13-year (midswap at 2.79%), according to Bloomberg.\u00a0<\/p>\n<p>The initial guidance for the cost of the bonds was announced at 285bp and 320bp, respectively.<\/p>\n<p>The final results were not published yet.<\/p>\n<p><em>iulian@romania-insider.com<\/em><\/p>\n<p><em>(Photo source: <a href=\"https:\/\/www.dreamstime.com\/\" target=\"_blank\" rel=\"noopener\">Breeze393\/Dreamstime.com<\/a>)<\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>Romania is getting close to completing its foreign debt sale plan for the year with a new Eurobond sale as the risk of a wider-than-expected budget deficit is expected to boost funding costs, Bloomberg announced on May 21. The country, which has already raised EUR 7.9 billion in dollar and euro-denominated FX bonds from international [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-186","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts\/186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=186"}],"version-history":[{"count":0,"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts\/186\/revisions"}],"wp:attachment":[{"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}