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October 13, 2017 www.intellinews.com I Page 28
bne:Credit Romania launches €1bn
Eurobond as domestic financing cost soars
Romania has tapped the market by re-opening its 10-year Eurobond issued in April to collect another €1bn, the finance ministry announced.
The yield was 2.114%, versus 2.411% in April, the ministry said, stressing that this was the lowest borrowing cost abroad Romania has ever paid for this maturity: 128bp above mid-swap, versus 170bp in April. At the same time, the yield was half the level expected by investors for local currency and same maturity.
Interest rates have increased significantly on the local market on the back of uncertainties generated by the government’s ambiguous, but risky, fiscal policy.
Around 140 investors with different profiles and from various regions of the world placed orders of over €2bn for Romania’s Eurobonds within three hours, the finance ministry said, highlighting the robust demand.
The National Bank of Ukraine (NBU) has completed the restructuring of UAH219.6bn ($8.3bn) in local currency sovereign bonds it holds, the regulator said in a statement published on October 9.
Of the total amount, UAH74.4bn in bonds will have a fixed coupon rate and UAH145.2bn will have a rate linked to inflation.
The move followed October's approval of new restructur-
ing terms of local bonds that are held by the central bank. The NBU will agree to restructure local currency sovereign bonds of a total par value of UAH219.6 ($8.3bn), of which UAH159.5bn mature in 2017-2020. After the restructuring, the bonds will mature every six months between May 2025 and November 2047.
Capital flight from Russia had doubled y/y as of September, according to the Central Bank of Russia (CBR).
The CBR said on October 10 it was due to operations by the banking sector to reduce external liabilities. "Capital flows related to operations of other sectors were generally balanced," the CBR said in a statement.
According to preliminary estimates of the Bank of Russia, the outflow in January-September 2017 was circa $21.0bn compared to $10.0bn for the same period last year, the report said. By the end of 2017, the Bank of Russia forecasts capital outflow from the country at $17bn, compared with $20bn in 2016.
Ukraine central bank completes local state debt restructuring
Capital flight from Russia doubles