Romanian natural gas producer Romgaz has issued a new six-year bond worth 500 million euros with a fixed interest rate, marking its second successful venture into international capital markets.
The bond issuance took place on 28 October and follows a similar 500 million euro five-year bond launched in October 2024. Both transactions are primarily intended to finance Romgaz’s participation in the Neptun Deep offshore gas project, in which the company holds a 50 percent stake.
The new bond, which matures in November 2031, was initially priced at 285 basis points above the seven-year mid-swap benchmark, translating to a yield of about 5.5 percent. However, due to strong investor interest totaling roughly 4.5 billion euros, the spread was reduced to 235 basis points, enabling Romgaz to secure a final coupon rate of 4.75 percent. Analysts highlighted that this financing cost is lower than the rate currently paid by the Romanian government for bonds with similar maturities.
Targeted exclusively at professional investors, the issuance has a nominal value of 100,000 euros with increments of 1,000 euros and is classified as a senior guaranteed instrument. The transaction was arranged by an international banking consortium that included BT Capital Partners, Citi, Erste Group, JP Morgan, Raiffeisen Bank International, and UniCredit.