Romania sells EUR 1.5 billion 4.875% benchmark bond issue due November 2019 - press release
November 2, 2012
Not for release, publication or distribution, directly or indirectly, in or into the United States of America, Canada, Australia, or Japan.
Romania, acting through the Ministry of Public Finance, rated Baa3/BB+/BBB- (Moody’s/ Standard & Poor’s/Fitch, negative/stable/stable), on 7th November issued a EUR 1.5bn 4.875% November 2019 benchmark bond. The deal was priced at a MS+370bps (yield of 5.04%), inside the initial price guidance of MS+375bps.
Barclays, Citigroup, Deutsche Bank and HSBC acted as Joint Bookrunners for the new transaction.
The mandate was officially announced on Tuesday, 31st October 2012 at 11.05 CET, releasing the initial guidance of MS+375bps area.
The orderbook grew quickly, driven by strong demand from fund managers across Europe, to over EUR1bn within 40 minutes. By 13.30 CET the orderbook had reached EUR3bn, and an hour later EUR4bn, allowing the leads to launch at a transaction at 15:00 CET at MS+370bps. The final orderbook reached an impressive EUR4.7bn, across 285 quality investors, representing an outstanding reception of Romania’s solid credit story.
The notable size and quality of the orderbook allowed the issuer to price their targeted EUR 1.5 billion transaction early in the afternoon with the new issue premium of 20bps.
The new bond represents a strong result for Romania, given the 7-year yield of 6bps inside the pricing of the recent 2018 tap in September on a yield basis, with more than a year’s maturity extension, for far larger size and with mid swap benchmark levels a touch wider.
In the new transaction, Romania achieved a broad geographic distribution with 27% sold to Austria/Germany, 23% to UK, 35% to the rest of Europe, 10% to US Offshore and 5% to Asia and Others.
In terms of the distribution by investor type, fund managers signed for half of the transaction with 48% while banks and retail investors took 22%, insurance companies and pension funds accounted for 17% while hedge funds took the remaining 13%.
The investor response and participation in this benchmark transaction clearly demonstrates Romania's credit strength and attractiveness for the European investor base.
Issue — Romania, 4.875% 7nov2019, EUR
Country of riskRomania
Redemption (put/call option)
М/S&P/F— / — / —
Company — Romania