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Government sells EUR 121 mn worth of bonds to banks

The Ministry of Public Finance (MFP) borrowed 121.9 million euros (500 million lei) from the commercial banks through a benchmark bond issue, put out to tender by the Romanian National Bank (BNR).

The government bonds mature in October 2014 and the average yield for which the issue was purchased is 7.29 percent. The coupon rate is 6.25 percent. The entire issue was worth 500 million and the total demand from the twelve banks to have taken part in the tender exceeded 1.02 billion lei.

Twelve banks to have filed offers to purchase government bonds are Alpha Bank Romania, BRD - Groupe Societe Generale, Banca Comerciala Carpatica, Banca Comerciala Romana (Romanian Commercial Bank), Banca Transilvania, Bancpost, CEC Bank, Citibank Romania, ING, Raiffeisen Bank, RBS Bank Romania and UniCredit Tiriac Bank.

Over the first quarter of 2011, the amount of money borrowed from banks was 15.6 billion lei, within the announced range of 15 to 17 billion. MFP borrowed more than 41 billion lei from the local banking sector in 2010, after almost 65 billion in 2009.

MFP intends to borrow somewhere between 13 and 15 billion lei in the second quarter of 2011, representing government bonds issues on the local market.'In order to optimize its portfolio, MFP wants to launch new benchmark bond issue with a maturity of three, five and 10 years,' announced MFP.

The budget deficit scheduled for 2011 and agreed with the IMF and the European Union within the financial package is 23.953 billion lei. 

Sursa: http://www.actmedia.eu

Tags: billion government mfp bonds banks rbs ing bnr brd cec

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