The largest local lender, BCR bank plans to launch a EUR 300mn Eurobond issue after the USD 400mn syndicated loan in end March, according to bank's executive vice-president quoted by Ziarul Financiar daily. Moroever, the bank plans to open credit lines with two large foreign banks.
BCR thus follows the market trend for borrowing abroad for expanding its activity and supplying the still growing demand for forex loans. Local banks' debts abroad have doubled to EUR 4.7bn over the last year. The foreign banks operating in Romania are in a better position to get foreign finance from their parents abroad, but the daily mentions also the good timing for BCR issue.
With the last Romania's Eurobond two years ago and the country's prospects rather good, the bank's debt is likely in demand. The March USD 400mn syndicated loan was issued at 0.725pps above 3-month LIBOR – which were the best terms for a Romanian issue with no state guarantees.