Finance Ministry Lists State Fidelis Bonds on BVB, Hits 3.2 Billion RON, Highest Since Program Launch

The Ministry of Finance (MF) attracted RON 1.27bn and EUR 383.6mn (values totaling almost RON 3.2bn – EUR 641mn), through the second primary offer for the sale of government bonds for the retail investors (FIDELIS) held this year through Bucharest Stock Exchange’s (BVB) systems.

‘The latest Fidelis issue sets new standards for government bond investments, breaking three important records: highest amount invested, highest number of investor-donors and highest amount invested by them. This is a performance that we see as proof of investor confidence in our economy. By channeling these financial resources into strategic investments, we are paving the way to sustainable wealth for all Romanians. As for the tranche for donor-investors, every time we think they can’t surprise us anymore, they come and show us that they can exceed our expectations: more than 9,000 lives saved in the first four months of the year’, stated Marcel Bolos, Ministry of Finance.

‘The success of the Fidelis government securities offerings proves that the Romanian State and Bucharest Stock Exchange have a successful partnership for the benefit of the market and retail investors. This collaboration leverages the capital market infrastructure to provide Romanians with a safe and transparent platform for saving and investing. The continuity of the program and the acceleration of the pace at which these offerings are carried out, together with attractive conditions, have attracted significant interest. This is evident from the almost 29.5 billion lei attracted in the last five years’, said Radu Hanga, Bucharest Stock Exchange President.

‘The cooperation between the Romanian State and the capital market for Fidelis government securities is to the benefit of all parties involved: the State obtains funds to support financial needs, while investors have access to secure investment opportunities with the support of the Romanian government. The stock exchange and the intermediation consortium facilitate these transactions and stimulate the development of the domestic capital market. The Fidelis program exemplifies the positive results that can be achieved through collaboration between the Romanian state and the capital market. It promotes financial inclusion by familiarizing Romanians with the mechanisms of the capital market and providing a safe way to manage their money, 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.

‘The fact that we have seen a record level of subscriptions since the launch of the Fidelis program denotes both the success of this instrument as an investment and savings vehicle, and the ability of the local market to make this a long-term endeavor. In the difficult geopolitical context, the instruments proposed by the Ministry of Finance are developing an already significant class of investors, those seeking primarily low-risk investments with attractive returns. We are also pleased to confirm the trend of support for this type of investment given by the maturities of previous issues and the reinvestment of funds in new issues’, said Daniela Secara, BT Capital Partners CEO.

The record volumes of the last Fidelis issue are proving the constant increase in interest showed by the investors for this type of instruments, certifying the fact that the market is maturing and Fidelis becomes an investment option that is more and more present in the retail investors’ portfolio’, said Emilian Dobran, Director Equity Trading, Alpha Bank Romania.

The volumes subscribed in Fidelis T-bonds issues confirm its positioning as an important financial instrument for saving, as well as for optimizing the portfolio management decisions of the retail investors. The increased level of uncertainty in the economic environment, as well as in the financial markets, with stock markets close to historical highs, but also inflation and interest rates at high levels, still far from the so-called normalized levels, favors a high level of demand for fixed income instruments issued by the Romanian state. From this perspective, it is expected that Fidelis T-bonds will continue to enjoy a very good audience among individual investors’, said Irina Neacsu, Executive Director of Corporate Finance BRD – Groupe Societe Generale.

For BCR, each new Fidelis issuance is a step forward in normalizing the conversation about financial education, investment diversification and active participation in Romania’s economic life. We are glad to be partners in this program, which truly facilitates access to investment tools and products for all those interested. Moreover, this record listing shows the growing interest of retail investors, but also their confidence and commitment in supporting the local capital market’, said Andrei Ionut Popescu, Executive Director Financial Markets BCR.

During this offer, which took place between April 8 and 17, Romanians placed over 19,000 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 266,127,700 634,485,600 378,353,700 254,791,600 128,839,300
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.

Bucharest Stock ExchangeBVBfidelisFinance ministrygovernment bondsRetail Investorsstate bonds
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