Wednesday, November 9, 2011
Romania to Meet Investors on Nov. 11 for the Planned Sale of Dollar Bonds
Romania will meet investors starting Nov. 11 to discuss the sale of dollar-denominated bonds under a 7 billion-euro ($9.6 billion ) medium-term notes plan, Deputy Finance Minister Bogdan Dragoi said.
The government has finished upgrading its three-year program to be able to issue dollar bonds and a final decision on the sale will depend on market conditions, Dragoi told reporters in Bucharest today. The road show, which will visit London and the U.S., will last until Nov. 16, he said.
The eastern European country seeks to tap international markets for the second time this year to reduce borrowing costs and help keep its budget deficit within 4.4 percent of gross domestic product after it stopped relying on a bailout from the International Monetary Fund and the European Union.
“We think Romania is a good story for investors,” said Dragoi. “We’re doing this now, after the IMF and EU quarterly review showed we had a very good performance and we have the 2012 budget outline. We’re, of course, more cautious in our estimates and with our budget, considering the European debt crisis.
Romania sold 1.5 billion euros of five-year bonds in its biggest offering of debt to international investors in June, after it stopped drawing funds in March from a 20 billion-euro bailout led by International Monetary Fund and cut public wages and raised taxes to narrow its budget deficit.
Citigroup Inc., Deutsche Bank AG and HSBC Holdings Plc will be managers of the sale, Dragoi said.
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