Romanian gas producer Romgaz raises 500 mln euros from debut Eurobond
BUCHAREST, Sept 30 (Reuters) -Romanian state-owned gas producer Romgaz ROSNP.BX launched its first eurobond issue on Monday, selling 500 million euros ($559.50 million) worth of five-year paper, IFR data showed, to partially fund a deepwater gas project in the Black Sea.
Romgaz has partnered with oil and gas group OMV Petrom ROSNP.BX to develop the Neptun Deep Black Sea gas project, one of the European Union's most significant natural gas deposits, which is expected to cost 4 billion euros to be split evenly between the two companies.
The company plans to fund its share of the project through a 1.5 billion euro Euro Medium Term Notes (EMTN) programme which got official approval earlier this month.
Monday's issue was priced 255 basis points over mid-swaps, only about 30 basis points above Romania's five-year eurobond, according to LSEG data.
Neptun Deep is expected to hold recoverable volumes of around 100 billion cubic metres (bcm) of gas, with the first gas expected in 2027.
Gas producers have said there is huge potential for further gas discoveries in Romania's Black Sea, where the European Union member has an estimated 200 bcm of reserves that promise to help diversify supply in the region.
($1 = 4.4433 lei)
($1 = 0.8937 euros)
Reporting by Luiza Ilie; Editing by Susan Fenton
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
