After already raising two-thirds of the full-year target (5.6 billion euros out of 8.5 billion euros) in the foreign market in January, Romania may only come back with a new FX bond. than in the second half of the year and even then for a smaller-than-expected issuance, Finance Ministry treasury chief Stefan Nanu told Reuters.
In the meantime, the country would focus on the domestic market where “the share of foreign assets in domestic debt – which stood at 19% at the end of November – had room to increase”, according to Nanu.
The 10-year yield fell to around 7.4% after peaking at 9.5% in October, pushed by expectations of faster disinflation.
The country took advantage of the unexpected shift in investor sentiment with a bumper debt issue – selling €2 billion of 2026 and 2029 Eurobonds on January 30 after a $4 billion triple bond issue in early January.
“Given the amount we have financed so far and the fact that domestic issuances are going well, we do not intend to issue Eurobonds again in the first half,” Nanu said.
The issuance that Romania could launch in the second half of the year could be 1 billion euros instead of 2.5 billion euros or more (as needed to reach the annual target), and it would most likely be green or sustainable , explained Nanu, without ruling out other problems. or private placement offers. He did not mention, however, the Samurai or Panda bonds considered by the government last year.
Domestically, Romania could continue to preload financing as long as demand remains robust, he said, noting that the increased share of leu debt was mitigating currency risks and contributing to currency revisions. rating.
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