Romgaz launches €500mn FX bond to strong demand

Romanian natural gas group Romgaz, controlled by the state as the majority shareholder, has successfully raised €500mn in a FX senior unsecured bond with a five-year maturity. 

The bond is largely aimed to fund the Neptun Deep offshore project where the company holds a 50% stake, according to Economica.

Investors placed orders for over €5.9bn of FX bonds. The issue was launched at mid-swap (MS)+255 (4.776%), 55 basis points below the initial indicative level, according to the company’s CEO Razvan Popescu.

“The capital raised will be essential in supporting key projects such as Neptun Deep and in further strengthening our leadership position in the energy sector," Popescu commented.

In 2023, the final investment decision was made on the development of the Neptun Deep offshore project, with potential recoverable reserves of 100bn cubic metres of gas, in which Romgaz is a partner alongside OMV Petrom. Estimated investments for the development phase of the project are up to €4bn, of which Romgaz must contribute €2bn.