Romania’s Ministry of Finance announced a pre-stabilization period starting March 26, 2025, as part of its latest bond issuance—the country’s second tap into international markets this year. The new offering includes a long 7-year and a long 14-year Euro-denominated bond, both to be listed on the Luxembourg Stock Exchange.
Stabilization Measures
The stabilization period, designed to support the post-issuance market price of the bonds, will be overseen by J.P. Morgan SE, together with Citi, ING, HSBC, and BofA Securities. The stabilization may run through April 26, 2025, with the possibility of over-allotting up to 5% of the total issue size.
Bond pricing remains unconfirmed, but transactions will be made in increments of EUR 1,000. Stabilization may be initiated—or withdrawn—at any time within the designated window. If conducted, it will take place over-the-counter, with the specific trading venue to be confirmed. The government clarified that these measures adhere to strict EU regulatory guidelines and that any over-allotment will not exceed 105% of the bond’s aggregate principal amount.
High Demand Amid Tightened Pricing
Investor appetite appears strong, with total bids surpassing €7.25 billion ($7.8 billion), according to Bloomberg sources. The shorter-dated bonds are being marketed at a spread of 335 basis points over midswaps, while the 14-year notes are offered at a 400-basis-point spread— tighter than the initial guidance, the American news outlet reported citing a person with knowledge of the matter, who asked not to be identified.
