The municipality of Bucharest has issued a EUR 500mn Eurobond against initial plans for EUR 120mn. The issue was heavily over-subscribed and was operated at a 4.125% yield – the smallest achieved by any Romanian entity by far. The maturity was set at 10 years. The funds will be used to finance big infrastructure projects.
Speaking of future Romanian debt issues, BCR bank plans a EUR 300mn Eurobond soon after having borrowed USD 400mn recently under a syndicated loan arrangement. Romania has not issued such bonds over
the last two years, but the finance ministry mulls over a EUR 1bn roll-over this year to restructure maturity and cost terms.