Romania is selling euro-denominated bonds for the first time since a new government took office, ending five months of political turmoil. The offering includes bonds due in 2030 and 2034, plus 12-year green notes. Initial pricing guidance is around 210 basis points over mid-swaps for the shortest maturity, 310 for the 8-year, and 360 for the green bonds.
The sale was delayed due to the political crisis following the collapse of a coalition in May. Mainstream parties backed a new administration last month, which has maintained fiscal discipline. The country’s eurobonds rebounded as tensions eased, with the 10-year yield falling 30 basis points from its October peak of 6.83%.
The new government approved its first budget review on Friday, keeping the 2026 deficit target at 6.2% of GDP. Finance Minister Alexandru Nazare pledged to avoid a junk credit rating. Central bank board member Cristian Popa emphasized the need to avoid unsustainable spending.
Simon Quijano-Evans of Macro Hive Ltd. called the bond offering a “courageous move” that will test market confidence in the government’s fiscal commitments.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing