The Ministry of Finance lists on BVB a new issue of FIDELIS government bonds with five different maturities and a cumulative value of almost RON 2.4bn

Bucharest Stock Exchange Posted

The Ministry of Finance (MF) attracted RON 758.2mn and EUR 329.1mn (values amounting RON almost 2.4mn – EUR 483mn), through the 12^th primary offer for sale of government securities for the individual investors (FIDELIS) carried out in the last four years through Bucharest Stock Exchange’s (BVB) systems.

Thus, the value of the 12 rounds of financing carried out in the last four years on Bucharest Stock Exchange by the Ministry of Finance reaches RON 20.5bn (EUR 4.2bn).

`The amounts invested in this year’s second edition of FIDELIS demonstrated that Romanians are familiar with the program and choose the government bonds launched by the Ministry of Finance for their savings, registering an important demand for both the RON and EUR tranches. The special tranche for blood donors attracted more subscriptions than the previous edition, and the large number of donors who came to the mobile center organized at our headquarters confirms the enthusiasm for the social character of this campaign. In total, 1,300 donors invested 106 million lei, compared to 1,000 donors in the previous campaign. Together with ROCK FM, who took us with them in the campaign to promote blood donation, the Ministry of Finance offers a solid partnership to investors who access these tools, but also to people who need support by donating blood. We see that this edition led to an increase in the number of donors at Bucharest level by 35%, compared to the same month of the previous year, from 1,408 to 2,202 donors`, stated Marcel Bolos, Ministry of Finance.

`The periodic issues of FIDELIS government bonds are a success considering both the impressive amounts attracted, as well as the fact that these government bonds are more suitable for those who want to take the first step in the world of investments, offering the lowest profit-risk ratio. We congratulate everyone involved in the success of this new offer, namely the Ministry’s team, the intermediary syndicate and Rock FM, because together they demonstrated that Romanians have both investors and donors blood`, said Radu Hanga, Bucharest Stock Exchange President.

`Just as donating blood helps improve medical health, so investing in assets listed on BVB helps improve financial health. We are pleased that the Ministry of Finance has created this tool to stimulate Romanians to invest, but also to donate blood. The high interest for the FIDELIS government bonds was seen both in the high value of the subscriptions, this one being the third out of the 12 carried out up until now, as well as in the number of orders placed, over 19,000`, stated Adrian Tanase, Bucharest Stock Exchange CEO.

The primary offer for the sale of FIDELIS government securities was carried by the syndicate formed by BT Capital Partners and Banca Transilvania, Banca Comerciala Romana, BRD – Groupe Societe Generale and Alpha Bank Romania. The government securities could also be purchased through eligible participants.

`In one of the busiest periods in the capital market’s recent history, which has definitively raised the profile of the local stock exchange for both Romanian and international investors, government bonds offered through the FIDELIS program have continued to attract significant subscriptions. The success of this new issuance confirms yet again the local market’s resources and the population’s appetite for saving and investing at solid returns with low risk`, said Daniela Secara, BT Capital Partners CEO.

`The Fidelis T-bonds issues have helped to expand the retail investors segment of the Bucharest Stock Exchange, taking into account that some of them are confronted with their first interaction with investments in securities. For experienced investors, government bonds are, on the other hand, an optimization tool for the portfolio management and, for the Ministry of Finance, Fidelis T-bonds can represent a significant means of financing for which there already is an important and stable demand on the Romanian financial market. In addition, the blood donors tranche has been once again successful, proving that retail investors appreciate the social component offered by the issuer`, said Irina Neacsu, Executive Director Corporate Finance, BRD – Groupe Societe Generale.

`We are pleased to partner with the Ministry of Finance in a new issuance of government securities, which continues the approach of supporting saving and investment behavior among the population. It is our joint role to provide easy access to the capital market and to advance the normalization of the investment financial literacy conversation. With each Fidelis listing, we are taking a step forward in raising awareness on investment tools and financial planning`, stated Cosmina Plaveti, Managing Director Investment Banking BCR.

`The Fidelis program has managed to gain the attention of the public, turning government bond issues into an increasingly popular option. Government bonds stand out for their simplicity, making them easy to understand even for those less familiar with the concept of investing, giving retail clients an easy way to invest their savings and diversify their portfolios`, said Emilian Dobran, Equity Trading Director, Alpha Bank Romania.

The offer was carried out between July 17^th and 28^th, period during which Romanians placed 19,156 subscription orders for both government securities denominated in RON and those in EUR.

The details of each issue are available in the table below:

The government bonds in the FIDELIS issue started trading on BVB on Thursday, August 3^rd, and can be bought or sold in a transparent environment at any time through authorized intermediaries.

The income obtained from both interest and capital gains in Fidelis bonds is not taxable.

Useful information about FIDELIS government bonds – questions and answers

Where can I find the bonds I bought in the offer?
If they were subscribed through a bank or brokerage company, without signing a financial investment services contract, the government bonds are registered in the records of the Central Securities Depository on behalf of the holder. If the government bonds have been purchased based on a financial investment services contract, through a bank or brokerage company authorized to trade on the Bucharest Stock Exchange, the government bonds are in the holder’s trading account.

 What do I do with government bonds?
They can be kept until maturity, or the holders can sell them or buy others in any trading session at BVB, through one of the intermediaries authorized (bank or brokerage company) to trade at BVB.
If the holders want to keep government bonds, they have two options:

• They will receive the interest annually, and at maturity the principal will be returned to a bank account sent to the Central Securities Depository, if the subscription was made through a bank or brokerage company, without signing a financial investment services contract.
• They can open a trading account at a bank or brokerage company, by signing a financial investment services contract and can transfer the government bonds from the Central Securities Depository to this trading account. In this case, the holders will have the government bonds in the investment account in which they will receive the annual coupon, and when the bonds will mature, the principal will be returned to them.

How can I sell or buy government bonds after the offer is closed?
The trades on the Bucharest Stock Exchange take place between buyers and sellers through the trading platform. In order to be able to buy or sell, investors must have a trading account with a bank or brokerage firm. Any holder of FIDELIS government bonds can trade government bonds starting with March 25th, 2020. The list of intermediaries authorized to trade on BVB is available HERE.

Where can I see the current price of the bonds?
The price can be checked at any time on the Bucharest Stock Exchange website, www.bvb.ro, by entering the symbols below in the [Search] box on the main page:

R2408B – for the donors tranche, with 1-yr maturity government bonds denominated in RON

R2408C – for 1-yr maturity government bonds denominated in RON

R2608A  – for 3-yrs maturity government bonds denominated in RON

R2408AE – for 1-yr maturity government bonds denominated in EUR

R2808AE – for 5-yrs maturity government bonds denominated in EUR.