The Finance Ministry intends to raise up to 4 billion US dollars from foreign markets through the issuance of forex-denominated government securities, according to a draft Order published in the Official Journal, Agerpres reports.

Thus, the Ministry approved the early redemption of the series of US dollar denominated bonds due on August 22, 2023, with a 4.375 pct coupon, and on January 22, 2024 respectively, with a coupon of 4.875 pct, and their entire or partial swap for new bonds „by contracting a loan on foreign capital markets as part of the ‘Medium Term Notes’ government bond program, by the release of a 5-year or longer series of bonds denominated in US dollars, which can be entirely or partially swapped for the redeemed bonds.”

Also, according to the Order, the Finance Ministry is to raise under the ‘Medium Term Notes’ program a loan from foreign capital markets by releasing two new series of US dollar-denominated bonds with a maturity of 10 years and 30 years, respectively, in a total amount of up to 4 billion US dollars.

The final amount of both the early redemption and the redemption operation, as well as that of the new issue, the maturity, the coupon, the number of series, as well as the other financial terms and conditions are to be established at the time of the transaction, depending on the market conditions.

The issue is managed by BNP Paribas, HSBC Continental Europe, ING Bank, Raiffeisen Bank International and UniCredit Bank.

The amount raised through the issue will be transferred into the foreign currency account opened in the name of the Finance Ministry with the National Bank of Romania and will be used for financing the budget deficit, the refinancing and early repayment of the government public debt, in accordance with the provisions of the law in force regarding the public debt.

Agerpres