$500m for the US market?

Romania may debut with a $500 million bond issue on the American market in the next three months, to capitalise on the very low interest level in the U.S. This is one of the three options considered by the Finance Ministry for Romania’s new offer for the international markets in the first quarter of this year. One of the options considered is releasing a new eurobond issue, with extending last year’s issue also taken into account. At the same time, the question is whether a ten-year maturity issue like the one last year is necessary. Finance minister Mihai Tanasescu says there will be only one issue aimed at the international markets, which would target raising about $500 million to finance 50% of this year’s projected budget deficit worth 2.65% of GDP. Tanasescu specified the strategy on how to approach the international markets would be completed by the end of the month. The previous issue was released on the foreign capital markets last April, raised 700 million euros at 8.5% yearly interest and is set to mature in ten years. As for the remaining budget deficit not covered by the cash raised from the international markets, it will be covered by borrowing from the domestic market. ZF