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Romania failed in attempt to borrow money from the American market

Romania failed in its attempt to borrow dollars from the American market through the MTN bond issue but will not give up the issue for USA where it will return in more favorable conditions.Last week, Finance Ministry representatives participates in meetings with British and American investors to promote bond issues in dollars.

The Finance Ministry has prepared an issue of denominated Romanian bonds in US dollars with a minimum value of 500 million dollars and a maximum level of 2 billion dollars for the US market to be launched on Thursday, according to government sources. 'The series had good results, investors showing interest in Romania but now we are waiting for the best moment to issue dollar bonds. We expect markets to calm down and we are ready to launch immediately after that. We want to diversify financing sources by this first issue in dollars and we want to have regular meetings with investors, following Poland's example. We want to improve the investors' perception of Romania, which has carried out significant reforms in the last two years, the secretary of state in the Finance Ministry, Bogdan Dragoi declared.

According to an order of the finance minister the final amount, maturity and interest rate as well as the other financial terms and conditions of the issue will be established when the loan is launched, according to market conditions.Dragoi has recently announced foreign news agencies that Romania would begin the promotion tour for bond issue in the US market.

The government approved last year the MTN bond issue in the international market for a period of three years, with a maximum level of 7 billion euro. In the first issue of the program Finances attracted in June 1.5 billion euro from the sale of bonds for 5 years, with a profitability of 5.29%.

Dan Lazar, the secretary of state in the Finance Ministry, declared on Tuesday that the unfavorable situation in the market and the drop of Hungary's rating would affect the issue of bonds in dollars prepared by Romania.

Agencies Fitch and Standard& Poor's worsened Hungary's rating which is now on the last level recommended for investments, according to Financial Times.

Sursa: http://www.actmedia.eu

Tags: issue market finance dollars romania american euro

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