CFR Marfa bonds oversubscribed

The 100 million euro bond issue released by CFR Marfa on the international capital market in November was oversubscribed by 20 million euros, sources close to the transaction told Ziarul Financiar. CFR Marfa has to pay some 10.5% a year plus the fees of the issue brokers, Deutsche Bank and Schroeder Salomon Smith Barney-Citibank. Why the high price? First of all, the State does not directly secure this loan, and second, the company does not have a history on the international markets. The investors that bought bonds include several banks and investment funds. Romania got 8.5% interest for its latest eurobond issue maturing in ten years, launched on the international capital markets this April. CFR Marfa is planning to use the cash raised from this issue (120 million euros) to buy and retool cars and engines, with most of the cash directed to cars. ZF