Investors in US and UK buy over three quarters of Romania’s dollar bonds


The bonds issued by the Public Finance Ministry (MFP) on February 28 on the US market have been mainly bought by US and UK investors, informs a release remitted on Wednesday.

The investors’ structure on geographic areas is: USA – 42 percent, UK -35 percent, Europe – 18 percent, Asia – 5 percent.

„The share of US investors slid 6 percentage points from the initial issue and that of UK investors went up 5 percent. At the same time, the share of Asian investors increased from 2 to 5 percent. The structure shows that Romania inspires confidence on increasingly more markets. An enhancement in the share of investors looking for safe, long-term assets, such as pension funds, insurance companies and central banks, can also be noted,” Public Finance Minister Bogdan Alexandru Dragoi said.

In terms of investors’ type, the largest share is represented by fund managers, with 61 percent of the total, followed by hedging funds, with 16 percent. The insurance companies, pension funds and central banks bought 15 percent of the bonds and the commercial banks and retail investors purchased 5 percent of the securities. Other investors bought 3 percent of the bonds.

„Through this issue, we reiterate our commitment for expanding the investors’ base on all continents and we are consistent with the measures we took for extending the public debt maturity,” the Public Finance Minister said.

Romania on Tuesday resumed the bond issue launched on the US market on January 31 and drew 750 million-dollar funds, with a 6.75 percent coupon and a yield declining 0.425 percentage points to 6.45 percent.

The issue was oversubscribed over four times, the total value of the offers submitted by investors amounting to 3.2 billion dollars.


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