Saturday, June 11, 2011

Romania's 5-Year Bond Draws Strong Demand From U.K., U.S.

LONDON -(Dow Jones)- Romania's five-year, EUR1.5 billion bond issued Thursday (yesterday)drew strong demand from both U.K. and Ireland and U.S., as investors sought out emerging European euro debt away from Europe's periphery.

The bond attracted more than EUR3 billion of orders and sold at 99.794% of face value, to yield 5.298%, pricing at the tight end of initial guidance, despite a choppy day in European markets as developments in Greece's debt crises continued to unfold.

Erste Group and Societe Generale SA were bookrunners on the deal, which is the first of two planned syndicated bonds from Romania in 2011.

The bond priced the same day two other European sovereigns, Latvia and Iceland, also got deals away.

All three were rocked by the financial crisis and forced to request international aid.

"There were two dollar deals yesterday [Thursday], so this Euro deal might have stood out for that reason but also it appealed to investors wanting to buy emerging European euro debt away from the usual suspect Euro periphery countries like Portugal and Greece," said a Societe Generale syndicate banker who worked on the deal.

U.K. and Irish investors snapped up 30% of the bond, while U.S. investors bought 40%, data from the lead managers showed.

German and Austrian investors bought 8%, as did buyers in central and Eastern Europe, while Benelux investors bought 5%.

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