Romgaz moves closer to launching €1.5bn bond programme in Luxembourg

State-controlled Romanian natural gas and energy group Romgaz has published the base prospectus for its €1.5bn Euro Medium Term Notes (EMTN) Programme, approved on September 20 by the market regulator in Luxembourg.

The EMTN is aimed at financing the Neptun Deep offshore gas project developed by Romgaz in a 50:50 partnership with OMV Petrom, but other projects as well. The first issue will allow the company to finance the development of Caragele (onshore) deposits, a photovoltaic park, as well as other future decarbonisation plans.

“The largest bond issue by a company with majority state capital is thus launched. This move comes after the company previously obtained an excellent rating from Fitch (BBB- investment grade), a move that I personally supported in several discussions with the rating agency," Minister of Energy Sebastian Burduja announced on Facebook.

Romgaz is expected to launch an inaugural €500mn bond under the EMTN scheme this month.

The company’s management disclosed in July that this first issue may have a maturity of seven years and will most likely be denominated in euros. But the final decision depends on the market circumstances at the time of the issue. The bonds may be 'passported' to the Bucharest market, the company’s management also said at that time.

Romgaz has a market capitalisation of RON21.3bn (€4.3bn) after its shares rose by 25.4% over the last year. The company distributed dividends out of last year’s profit resulting in a 2.58% yield.