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Bloomberg: Romania offers dollar bonds, following eastern EU debt sales

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Romania is tapping international markets for the first time in 2024 to take advantage of high demand for emerging-market debt after its regional peers went ahead with euro and dollar offerings to fund their budget deficits, according to Bloomberg.

The Balkan nation is offering benchmark dollar bonds due 2029 and 2034 at an initial pricing talk in the area of 225 basis points over Treasuries for the shorter-dated debt and in the 265 basis points area for the longer dated notes, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it.

The planned sale comes after regional peers Poland, Hungary and Slovenia contributed to a record amount of debt raised by emerging-market countries in the first days of 2024, taking advantage of favorable financing conditions.

With a plan to trim this year’s budget shortfall to 5% of economic output from about 5.7% in 2023, Romania aims to raise as much as €9.5 billion from international markets this year. That volume aligns with the amount raised from foreign investors last year, which would make Romania one of the top borrowers in the region.  

The Finance Ministry in Bucharest has said it’s also planning to venture to new markets this year, including green and Samurai bonds to diversify its investor base.