Successful Eurobond issue

Since the beginning of the month, Romania has attracted 4 billion euros from foreign markets.

Leyla Cheamil, 14.10.2025, 13:50

The Romanian finance ministry has managed to attract, since the beginning of the month, around 4 billion euros from foreign markets. According to a statement from the ministry, this is one of the most successful Eurobond issues on international markets, Romania’s fourth and final one this year. Bonds are financial instruments by which an investor lends money to an entity in exchange for a regular interest rate and the reimbursement of the money at an established date. The issue was carried out in three phases: a tranche of 2 billion euros due in 7 years, one of 1 billion euros due in 12 years, and another of 1 billion euros due in 20 years. This is Romania’s last public Eurobond issue this year.

The transaction has seen new records, including the largest total maximum amount of orders from investors before the establishment of margins, accounting for 17.5 billion euros, and the largest operation of early redemption recorded in Romania by means of a Eurobond issue, amounting to around 1 billion euros. The issue benefitted from a very diverse investment base, both geographically and in terms of the type of investor.

At the same time, Romania has gone ahead with the process of active management of its debt portfolio by means of the early redemption of Eurobonds due in 2026, with a view to limiting the risk of refinancing and extending the  average residual maturity of the portfolio.

“Romania’s success on international capital market on the first day after the adoption of the budget correction confirms investors’ confidence in the country’s economic direction and the measures adopted. The signal this is sending supports taking further reforms to achieve macroeconomic stability and fiscal sustainability. We will act firmly to address unbalances and for a predictable and attractive investment environment”, said finance minister Alexandru Nazare in a statement.

At the beginning of October, the government has revised the loan requirement for this year from 232 billion lei to 258 billion lei. It took this decision after adjusting the budget to raise the budget deficit target from 7% of GDP to 8.4%. The main changes refer to spending, especially higher payments for interest rates and expenditure accounting for social welfare and healthcare. Fitch rating agency forecasts Romania’s budget deficit to fall to 8.5 of GDP this year from the record high 9.3% seen last year.