Bucharest Stock Exchange Posted
The Ministry of Finance (MF) continues the issues of FIDELIS government bonds for retail investors and launches on Bucharest Stock Exchange (BVB) a new selling offer, between June 6 and 21. This is the eighth such offer carried out on the capital market since 2020. Through the previous seven offers, the Ministry of Finance attracted from the retail investors over RON 11bn (EUR 2.2bn).
‘The Ministry of Finance returns with a new issue under the FIDELIS Program for individual investors. In the current economic context, we meet investors by offering attractive interest rates, through secure savings instruments and we are convinced that together with our partners we can ensure the success of a new issue of government securities on the capital market’, stated Adrian Caciu, Ministry of Finance.
Resident and non-resident individuals over the age of 18 years can subscribe Fidelis government bonds denominated in RON and EUR within the public sale offer carried out on Bucharest Stock Exchange, through BT Capital Partners & Banca Transilvania, Banca Comerciala Romana, BRD – Groupe Societe Generale and Alpha Bank Romania.
‘By continuing the FIDELIS program, the Ministry of Finance offers Romanians the opportunity to invest in higher yields at part of the money they have. Investing in Fidelis government bonds can be a first step that many Romanians can take in the investment world, especially in a period of rising inflation and in which central banks are raising key interest rates to temper the inflation’s dynamic. The growing interest of Romanians in FIDELIS government bonds is also seen quarterly in the increase in the number of investors in BVB, which since 2020 has increased by almost 66%, over 34,400 accounts being opened, up to almost 88,000, according to Investor Compensation Fund’s statistics’, said Radu Hanga, Bucharest Stock Exchange President.
‘This partnership between the Ministry of Finance and the Romanian capital market can also be measured in the value of the financing rounds carried out by the Romanian State through the FIDELIS program, which exceeded 11 billion lei at the end of the offer carried out in April. Accessibility and ease of disinvestment are two of the advantages of FIDELIS government bonds. Accessibility, by the fact that they can be subscribed through the network of the four banks in the consortium, but also by the other intermediaries, and the ease of disinvestment, by the fact that after listing, government securities can be traded at any time on BVB. We noticed a high interest of investors for the trading of these government securities, and the proof is the value of trades carried out in the secondary market, which only last year was almost 900 million lei’, said Adrian Tanase, Bucharest Stock Exchange CEO.
The details are available in the table below:
|Criteria||RON issue 2023||RON issue 2025||EUR issue 2023||EUR issue 2024|
|Maturity||June 24, 2023||June 24, 2025||June 24, 2023||June 24, 2024|
|Yearly interest rate||7.2% p.a.||7.8% p.a||1.40% p.a.||2.3% p.a.|
|Offering period||June 6 – 21||June 6 – 21||June 6 – 21||June 6 – 21|
|Nominal value||RON 100||RON 100||EUR 100||EUR 100|
|Minimum subscription value||RON 5,000||RON 5,000||EUR 1,000||EUR 1,000|
The allocation of the government bonds subscribed within the offer will be executed on the allocation date (June 21, 2022), and the final number of government bonds offered will be established by the issuer in consultation with the intermediary syndicate. The orders related to the subscriptions allocated to investors based on the subscriptions validated by the members of the syndicate / Eligible Participants will be registered in BVB’s trading system dedicated to public offers (government bonds). The first trading day is estimated to be June 27, 2022.
The income obtained through the investment in FIDELIS government bonds, both from interest and from capital gains, is non-taxable. Also, the subscriptions can be made through Eligible Participants, which represent any intermediary authorized by Financial Supervisory Authority, which is financial investment company or credit institution registered as a participant in Bucharest Stock Exchange’s trading system that signed the commitment regarding the conditions of the offer, the provisions of the issue prospectus and sent the commitment to the Lead Manager. The intermediary syndicate of the offer includes BT Capital Partners (Lead Manager) & Banca Transilvania (distribution group), BCR, BRD and Alpha Bank Romania.
More details can be found on BVB website.