news

Publication Date
Headline
Outlet
URL
Snippet
04-Feb-2018
Beating Romania's debt. The MPF has attracted two billion euros on the international
markets the Ministry of public finance has taken the loan, on 1 February 2018, two billion
euros on the international financial markets through a ...
manager.ro
Click to open
Beating Romania's debt. The MPF has attracted two billion euros on the international debt
markets Tags: romania romania romania's debt bonds mfp Ministry of public finances has
taken the loan, on 1 February 2018, two billion euros on the international financial markets
through an issue of issuance in euro, in two installments, of which 750 million euros with
maturity of 12 years with 2.50% coupon and 1.25 billion with 20 years maturity with 3.375
percent coupon. The issue was oversubscribed by more than twice.
The deal is part of the external financing plan on this issue through 2018, Romania an
important part of ensuring the necessary funding for foreign markets this year, consolidating,
at the same time, the reserve currency to provide financial The Treasury of the State. By
maturitatile, Romania aimed to achieve the objective of extending the maturitati curve in
euro. Total cumulative demand over 5.3 billion euros coming from approximately 300
subscription orders from investors, priced at the level of final demand set rising to over 4
billion (1.7 billion euros, for 12 years, trance and 2.4 billion euros for the 20-year trance).
The basis of the investment transaction has been diversified both geographically, as well as
the types of investors for both installments, by signing a participation of 28 countries for
each of the installments. The issue has been intermediata by the Barclays Bank PLC, Erste
Group Bank AG, Societe Generale, Unicredit and ING Bank NV. According to the MPF, the
two parts were made at the lowest rates of reference margin over mid-swaps for maturitatile.
Thus, for the maturity of 12 years, was obtained by a return of 2.585 percent, while, for the
issuance of 20 years, was obtained the lowest cost on this maturitati with a yield of 3.45%,
dropping towards the issue with the same maturity in October 2015, at a yield of 3.93%
(which was reopened in February 2016, at a yield of 3.90 percent, and in April 2017, at a
yield of 3.55 percent). Execution of strategy has enabled the reduction in costs for both the
successive installments, as the growth of subscription orders two installments and the
quality growth investors who placed orders. Thus, in the case of maturity of 12 years, the
credit risk was reduced from 150, at 133 points, and, for the maturity of 20 years, the risk
was reduced from 210, at 190 basis points, with Romania Thus, the lowest credit risk
margins for these maturitati. "The issue of the issuance is not a particular loan, but is a
common tool that the Ministry of finance to ensure Public needs il uses financing of budget
deficit and public debt refinancing. However, these broadcasts reflect the perception of the
investment environments and financial markets over the long term evolution of Romania.
Suprasubscrierea of the two installments of the show, as well as diversifying investment
base on both types of investors, and geographically reflects long-term confidence in the
economic development of our country. This show fits perfectly in the debt management
strategy of the Government aiming at extending the maturity of the debt portfolio and thus
reducing the risk of refinancing, consolidating its currency reserve Treasury, as well as
minimizing long-term costs related governmental loans, "said Finance Minister Eugen
Teodorovici.
For 12-year trance geographical distribution was the following: the US (19%), Central and
Eastern Europe (16%), Germany/Austria (16%), Romania (14%), France/Benelux (9%), Italy
(9%), Switzerland (6%) and United Kingdom (5%). In terms of the types of investors, money
managers prevailed (62%), being followed by commercial banks and private banks (25%),
pension funds and insurance companies (8%), banks (5%) and other investors (1%). For 20
years trance geographical distribution was the following: United Kingdom (33%),
Germany/Austria (32%), USA (10%), Switzerland (6%), Italy (5%), France/Benelux (4%),
Central and Eastern Europe (3%) and Scandinavia (2%). In terms of the types of investors,
prevailed money managers (72%), being followed by commercial banks and private banks
(12%), pension funds and insurance companies (8%), banks (6%) and other investors (4%).