The Ministry of Finance (MF) attracted RON 843.9mn and EUR 190.5mn (values totaling RON 1.8bn – EUR 360.3mn), through the first primary offer for the sale of government bonds for the retail investors (FIDELIS) held this year through Bucharest Stock Exchange’s (BVB) systems.
‘There are several positive aspects that I noted at the end of each of the last Fidelis editions. First of all, it is obvious that the awareness degree of the advantages of investing their savings has increased among Romanians. On the other hand, I am glad that investors’ confidence in our ability to offer advantageous instruments is maintained, but also that we manage to play a prominent role in the development of the local capital market. Perhaps most importantly, the spirit of solidarity of the donor-investor community has established itself. Even though we reduced the subscription period by a week, they still exceeded the number of all editions: 1,405 persons donated blood and saved more than 4,200 lives, and also heaving the best offer of the issuance’, stated Marcel Bolos, Ministry of Finance.
‘The State is an important partner of the capital market, both through the support it offers, through its institutions, in the steps we undertake to accelerate the development of the market, and through this consistency in carrying out Fidelis government sales offers by The Ministry of Finance. These government bonds have, on the one hand, a component of diversification of funding sources by the Treasury, and, on the other hand, they are a financial education tool for many Romanians who, by investing in Fidelis, take a first step in the world of investment. These aspects weighed heavily in our decision to award the Ministry of Finance for this consistency in the Fidelis government bond issue’, said Radu Hanga, Bucharest Stock Exchange President.
‘We congratulate the Ministry of Finance, the brokerage syndicate and their media partner RockFM for the success of a new issue of Fidelis government bonds and for this symbiosis of the tranche dedicated to donors, between the social and the investment component. The offer of financial instruments available for investment on the Bucharest Stock Exchange increases with each new listing, of equity or bonds, and in recent years it has diversified a lot, through the more than 190 listings, including the municipal bonds that start to be issued by local authorities. The range of financial instruments will expand even more with the operationalization of CCP.RO Bucharest and the relaunch of the derivatives market, for which the Financial Supervisory Authority approved the authorization request’, said Adrian Tanase, Bucharest Stock Exchange CEO.
The primary offer for sale of Fidelis government bonds was carried out by the syndicate formed by BT Capital Partners (Lead Manager and Intermediary) and Banca Transilvania (Distribution Group), as well as Alpha Bank Romania, Banca Comerciala Romana, BRD – Groupe Societe Generale (Intermediaries). The government bonds could also be purchased through 11 eligible participants.
‘We have the opportunity to highlight our ongoing contribution, as partner in this program, to the financial education and healthy saving and investing culture that has become characteristic of retail investors in recent years, since the launch of the Fidelis government bond issuances for the population project through BVB. A new successful offering proves the attractiveness of the instruments in the current market environment and the recurrence with which investors have returned to new issuances following accumulation of disposable income and maturity of previous editions’, said Daniela Secara, BT Capital Partners CEO.
‘The issuances of Fidelis government bonds for individuals continue to be received positively by retail investors attracted by savings and portfolio diversification opportunities. Thus, the significant and stable demand for those financial instruments successfully supports the strategic endeavor of the Ministry of Finance to obtain financing via the Bucharest Stock Exchange’, said Nicoleta Ruxandescu, Alpha Bank Romania Investment and Capital Markets Unit Director.
‘The regular Fidelis T-bonds issues have succeeded in consolidating a financial instrument that has become indispensable for retail investors in optimizing their portfolio management decisions. In addition, Fidelis securities constitute a long-awaited benchmark for reporting the earnings of investments in corporate bonds and shares at a risk-free rate accessible to small investors who manage their own securities portfolios. On the other hand, the pivot effect of Fidelis securities should not be neglected for those who invest for the first time in securities and who can later take the step towards investments in bonds and shares listed on the BVB, this representing the most sustainable way of building of a strong retail segment for capital market’ securities’, said Irina Neacsu, BRD – Groupe Societe Generale Corporate Finance Executive Director.
‘We prioritize financial health, and we are glad to be partners for the Ministry of Finance, taking into consideration that Fidelis issuances encourages responsible financial behavior and facilitates access to financial investment instruments for all Romanians. For BCR, prosperity is built through financial literacy and capital market development, and our common role is to grow the saving and investments culture, so that every Romanian to be able to make smart financial choices for their future’, said Andrei Ionut Popescu, Executive Director Financial Markets BCR.
During this offer, which took place between February 21 and March 1, Romanians placed almost 14,000 subscription orders for both RON – denominated and EUR – denominated government bonds.
The details are available in the next table:
Criteria
RON issue for blood donors, with maturity in March 2025
RON issue with maturity in March 2025
RON issue with maturity in March 2027
EUR issue with maturity in March 2025
EUR issue with maturity in March 2029
ISIN
ROYE7S9SJ394
RO54Q1KOXNR8
ROFO4YBT7LL8
ROH07C9MF087
ROBK9EB2A2D8
Ticker
R2503B
R2503A
R2703A
R2503AE
R2903AE
Maturity
1yr
1yr
3yrs
1yr
5yrs
Yearly interest rate
7% p.a.
6% p.a.
6.75% p.a.
4% p.a.
5% p.a.
Issue value
135,336,000
358,263,200
350,312,200
118,006,200
72,532,100
Nominal value
RON 100
RON 100
EUR 100
EUR 100
EUR 100
Minimum subscription value
RON 500
RON 5,000
EUR 1,000
EUR 1,000
EUR 1,000
The income obtained through the investment in FIDELIS government bonds, both from interest and from capital gains, is non-taxable.
Resident and non-resident individuals over the age of 18 up to the closing of the offer were able to invest in the issuance of Fidelis government bonds.
The post This year first Fidelis government bonds debuted on the Bucharest Stock Exchange appeared first on The Romania Journal.
