Romanian gas and energy giant Romgaz is set to list its first bond issue worth EUR 500 million on the Bucharest Stock Exchange (BVB) on Nov. 19, 2024 as it seeks to finance the Neptun Deep Black Sea offshore project that it is developing in collaboration with OMV Petrom.
Last month, Romgaz issued the first tranche of 5-year international bonds, worth EUR 500 million, part of the company’s Euro medium term notes (EMTN) program, to support investment plans. The bonds, listed on the Luxembourg Stock Exchange, generated significant interest from international investors. The demand exceeded the supply by more than 10 times, and the award interest stood at the level of 4.776%.
“The book building process meant not only a record number of international investors, but also a demand of over 5 billion euros, which marks a premiere for the corporate bond issuance market in Romania” had stated Razvan Popescu Romgaz General Manager.
Razvan Popescu Romgaz General Manager
Romgaz, which is 70% controlled by the Romanian state through the Ministry of Energy, plays a pivotal role in Romania’s energy landscape-controlling 52% of domestic gas production and providing over 90% of the country’s underground gas storage capacity.
In the first 9 months of 2024, Romgaz produced 3,672 million m3 natural gas, by 157 million m3
(4.54%) higher volumes than in the similar period of 2023. Electricity produced in the reporting period was 729.675 GWh, 13.75% increase (88.209 GWh) as compared to the same period of last year.
The Transylvania-based company reported RON5.6 billion turnover in January-September 2024, down 17% from the year-earlier period, while net profit increased by 5% to RON2.3 billion.
The company with a history that began in 1909 is listed on Bucharest Stock Exchange for over a decade and GDRs are traded on London Stock Exchange. Romgaz has a capitalization of RON 21.4 billion.
