Romania's Finance Ministry raises 975 million lei via benchmark bond issuance

On Monday, Romania's Ministry of Finance issued a benchmark sovereign bond worth 975.1 million lei, with a residual maturity of 49 months and an average yield of 6.59% per annum. The nominal amount of the issue was 700 million lei, but banks subscribed 1.355 billion lei, nearly double the targeted size. The proceeds are earmarked for refinancing public debt and covering the state budget deficit.

A supplementary auction scheduled for Tuesday aims to attract an additional 146.3 million lei at the same yield, which would bring the total raised in this series to 1.1214 billion lei. The ministry plans further borrowing of 7.6 billion lei in June 2026, a rise of 3 billion lei from the May schedule, indicating a sustained need for financing.

Earlier in May, two benchmark issuances drew strong demand: 920 million lei for bonds maturing in April 2028 at a 6.38% yield and 563 million lei for bonds maturing in April 2035 at a 6.96% yield. These figures underline the market’s appetite for Romanian sovereign debt despite elevated borrowing costs.