Finance Ministry raises on Thursday 710 million RON from commercial banks

Autor: Andreea Năstase
Publicat: 06-01-2022 16:01

The Finance Ministry raised, on Thursday, 710 million RON from banks, through two benchmark-type state bond issues, with a residual maturity at 172 months, and 91 months, respectively, according to data published by the National Bank of Romania (BNR).

Thus, the Finance Ministry drew 200 million RON, through an issue coming to term on April 28, 2036, at an average yield of 5.62 pct per year. The nominal value of the issue was 200 million RON, and banks subscribed 316.5 million RON.

Another 510 million RON were drawn following the auction for a bond issue coming to term on July 25, 2029, at an average yield of 5.30 pct per year. The value of the issue was 500 million RON, and the participating banks have subscribed 724 million RON.

The Finance Ministry has planned to borrow 4.4 billion RON off commercial banks in January 2022, of which 300 million RON through a discounted treasury bond issue and 4.1 billion RON through ten state bond issues.

To these the sum of 615 million RON can be added through additional sessions of non-competitive bids, related to bond auctions.

The total sum, 5.015 billion RON, is by 1.595 billion RON higher than the 3.42 billion RON programmed for December 2021, and will be aimed at refinancing the public debt and the national budget deficit.