Romania's Romgaz gets closer to launching EUR 1.5 bln bond scheme in Luxembourg
<p>State-controlled Romanian natural gas and energy group Romgaz (BVB: SNG) published the Base Prospectus for the EUR 1.5 billion Euro Medium Term Notes (EMTN) Programme, approved on September 20 by the market regulator in Luxembourg.</p>

<p>"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.</p>

<p>Romgaz is expected to launch an inaugural EUR 500 million bond under the EMTN scheme this month.</p>

<p>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. However, the final decision depends on the market circumstances at the time of the issue.&nbsp;</p>

<p>The company's management also said that the bonds may be 'passported' to the Bucharest market.</p>

<p>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, and other future decarbonization plans.</p>

<p>Romgaz has a market capitalization of RON 21.3 billion (EUR 4.3 billion) after its shares rose by 25.4% over the last year. The company distributed dividends from last year's profit resulting in a 2.58% yield.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: Inquam Photos/Adel Al-Haddad)</em></p>