Romania has drawn approximately 4.7 billion euros from international financial markets, through the Romanian state's first exit on foreign markets in 2026, and through this operation it has covered almost half of the external financing needs estimated to be achieved through Eurobond issuances for 2026.
The Romanian state entered foreign markets on February 25, three days before the start of the conflict in Iran, thus avoiding the increase in financing costs that followed the outbreak of hostilities, the Ministry of Finance announced in a release.
"The money was obtained by issuing Eurobonds - securities through which the state borrows from institutional investors on international markets and undertakes to return the amount over several years, along with interest. Through this operation, Romania covered almost half of the external financing needs estimated to be achieved through Eurobond issuances for 2026," the cited source states.
According to the Ministry of Finance, investor interest was very high, with total demand for Romanian bonds exceeding 15.5 billion euros, over three times more than the amount the state wanted to borrow. This allowed Romania to obtain better financing conditions, lower interest rates than those initially estimated and even below the market prices at that time, the institution says.
"Thus, Romania, through the Ministry of Finance, accessed a tranche of 2.25 billion euros with a maturity of 7 years (2033), a new tranche of 2 billion dollars with a maturity of 10 years (July 2036) and 750 million euros representing the reopening of the issue maturing in September 2044. After the final establishment of the margins, the transaction was concluded with a yield of 4.638% and a coupon of 4.625% for the 7-year tranche in euros, a yield of 5.750% and a coupon of 5.750% for the 10-year tranche in dollars and a yield of 5.966% and a coupon of 6.000% for the reopening of the euro-denominated issue maturing in 2044," the press release from the Ministry of Finance reads.
The funds raised will be used to finance the budget deficit and refinance older state loans, as well as to strengthen the foreign exchange financial reserve at the Treasury's disposal.
Several hundred international investors participated in the issue through more than 500 cumulative orders in all 3 tranches, including official international institutions and central banks in addition to investment funds, banks and pension and insurance funds, covering different geographical regions (Europe, America, Asia and the Middle East), which confirms the high and diversified interest in government securities issued by Romania, the document also reads.
The transaction was brokered by BofA Securities Europe SA, Deutsche Bank Aktiengesellschaft, Erste Group Bank AG, ING Bank N.V., Raiffeisen Bank International AG, and Societe Generale.
"Romania's first Eurobond issuance in 2026 was a real success and shows once again the confidence of international investors in the Romanian economy and in the measures taken by the Government to stabilize public finances," Finance Minister Alexandru Nazare said in a release.
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