State-controlled Romanian natural gas and energy group Romgaz has launched its EUR 1.5 billion Euro Medium Term Notes (EMTN) Programme, with the base prospectus approved by Luxembourg’s market regulator on September 20. Energy Minister Sebastian Burduja announced this significant bond issue, marking the largest by a company with majority state capital, following Romgaz’s recent BBB- investment grade rating from Fitch.
Romgaz plans to issue an inaugural EUR 500 million bond under the EMTN scheme this month, with a maturity of seven years, likely denominated in euros, though the final decision will depend on market conditions. The bonds may also be ‘passported’ to the Bucharest market. Proceeds will primarily finance the Neptun Deep offshore gas project, developed in partnership with OMV Petrom, along with other initiatives like the Caragele onshore deposits and a photovoltaic park as part of its decarbonization strategy. Romgaz currently has a market capitalization of RON 21.3 billion (EUR 4.3 billion), with a 25.4% increase in share value over the past year and a 2.58% dividend yield from last year’s profits.
