The recent issuance garnered substantial investor interest, with total demand exceeding $9.5 billion for the dollar tranches and over €4.5 billion for the euro tranche, excluding demand from intermediary banks.
Romania's bonds were oversubscribed by nearly 2.8 times, indicating investors sought to purchase almost three times the contracted amount. Over 240 investors participated, and the funds were settled on July 16.
Due to an accelerated increase in buy orders, Romania managed to lower initial borrowing costs. Risk spreads were reduced by 40 basis points across all tranches. For the 5-year USD bonds, the state paid no additional premium, while for the 10-year bonds and the euro tranche, negative premiums of 3 and 10 basis points respectively were recorded, meaning Romania borrowed at a cost lower than that of the secondary market.
Alexandru Nazare, Minister of Finance, said: "This success of Romania on international capital markets reconfirms investors' confidence in Romania's capacity to implement and continue to take the necessary measures to correct current imbalances."
The eurobond issuance benefited from a highly diversified investor base, both geographically and by investor type. The transaction was facilitated by BofA Securities Europe, Citigroup Global Markets Europe, Erste Group Bank, J.P. Morgan SE, Raiffeisen Bank International, and Société Générale.
