Finance Ministry raises 977.6 ml lei from banks for average yield of 3.50 ppa

The Public Finance Ministry raised on Monday 977.6 million lei from banks through a benchmark bond issue with a 40-month residual maturity, at an average yield of 3.50 ppa, the National Bank of Romania announced.

The face value of the issue was 600 million lei, and banks submitted bids worth 1.032 billion lei.

An additional bidding session is scheduled for Tuesday, through which the FinMin plans to raise another 90 million lei for the yield set on Monday.

The Public Finance Ministry intends to borrow this July 5.3 bln lei from banks - of which 1.2 bln lei through two issues of discount T-bills, and 3.8 billion lei through eight bond issues, to which another 540 ml lei could add through additional non-competitive bids related to the bond auctions.

The raised amounts will be used to refinance the public debt and the state budget deficit.