The Ministry of Finance (MF) attracted over RON 1.4bn and EUR 168mn (values totaling over RON 2.2bn – EUR 452mn), 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 second issue of Fidelis government bonds this year reconfirms investors’ interest in this type of instrument, the easy subscription method, the advantageous interest rate and the predictability of the launch of these issues being defining elements in making an investment decision. By launching the monthly issues under the Fidelis program, the Ministry of Finance reaffirms its commitment to the development of this program, with individual investors becoming a partner by ensuring the financial resources necessary for the development of the Romanian State, while benefiting at the same time from the safety of the investment made and advantageous financial conditions. We are particularly pleased with the results recorded on the tranche intended for blood donors, a financial instrument with a social policy component attached, namely supporting people in difficult times’, stated Tanczos Barna, Deputy Prime Minister and Minister of Finance.
‘Fidelis government bond issues strengthen the link between the State and the capital market, offering investors safe and attractive investment opportunities. Guaranteed by the State, these bonds present a low risk and are useful for diversifying portfolios, especially in times of uncertainty. A major advantage is the tax exemption of earnings for individuals, which increases their attractiveness. Through the 22 offers carried out since August 2020, the Ministry of Finance has attracted almost 10 billion euros from the population, which reflects the confidence of investors. The Fidelis program continues to be a key tool for the growth of the capital market in Romania and we congratulate the Ministry of Finance, the Syndicate and the partner Rock FM for the success enjoyed by the Fidelis program from one edition to another, including for the social component of the tranche for blood donor investors, where a total of over 58,000 orders have been placed since December 2022 to date’, said Radu Hanga, Bucharest Stock Exchange President.
‘The listing of Fidelis government bonds represents an important milestone for the Romanian capital market. These instruments offer investors attractive and secure opportunities and, at the same time, contribute to establishing reference standards for corporate and municipal bond issuers, as well as for companies wishing to list. Fidelis is a valuable benchmark in setting financing prices, thus facilitating access to capital and promoting transparency and efficiency in the market. Through these issues, the Ministry of Finance demonstrates the State’s commitment to supporting the development of the capital market and to offering investors the opportunity to diversify their portfolios. We are confident that the Fidelis program will continue to attract investor interest and contribute to the growth of the Romanian capital market, providing a successful example for future bond issues and company listings’, 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), Alpha Bank Romania, Banca Comerciala Romana, BRD – Groupe Societe Generale and TradeVille (Intermediaries) and Banca Transilvania, Libra Internet Bank (Distribution Group). The government bonds could also be purchased through 10 eligible participants.
‘Government bond issuances under the Fidelis program continue to be positively received by retail investors, attracted by the possibility of protecting and growing their savings in a safe and transparent manner, as well as by the opportunities for diversifying investment portfolios. We are confident that Fidelis government bonds will continue to be a reliable investment option in the future, both on the primary as well as on the secondary markets’, stated Nicoleta Ruxandescu, Director of the Investment Banking Unit within Alpha Bank Romania.
During this offer, which took place between March 7th and 14th, Romanians placed over 24,600 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
1 yr |
RON issue
1 yr |
RON issue
3 yrs |
RON issue
5 yrs |
EUR issue
2 yrs |
EUR issue
7 yrs |
| ISIN | ROPNCN54BRS7 | ROK43NCW9LU1 | RO9PPT8AXOV1 | RON6WVVB8CK0 | ROFFXW47BSR5 | ROW1WT1KVBM6 |
| Simbol | R2603B | R2603A | R2803A | R3003A | R2703AE | R3203AE |
| Maturity | 1 year | 1 year | 3 years | 5 years | 2 years | 7 years |
| Yearly interest rate | 7.80% p.a. | 6.80% p.a. | 7.50% p.a. | 7.80% p.a. | 3.75% p.a. | 6.00% p.a. |
| Amount raised (millions) | 327.5 | 760.2 | 209.4 | 113.3 | 82.6 | 85.5 |
| Nominal value | RON 100 | RON 100 | RON 100 | RON 100 | EUR 100 | EUR 100 |
| Minimum subscription value | RON 500 | RON 5,000 | RON 5,000 | RON 5,000 | 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.
Useful information about FIDELIS government bonds – questions and answers
Where can I find the bonds that I bought in the offer?
If the bonds 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. 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:
R2603B – for the blood donors, 1-yr maturity government bonds denominated in RON
R2603A – for the 1-yr maturity government bonds denominated in RON
R2803A – for the 3-yrs maturity government bonds denominated in RON
R3003A – for the 5-yrs maturity government bonds denominated in RON
R2703AE – for the 2-yrs maturity government bonds denominated in EUR
R3203AE – for 7-yrs maturity government bonds denominated in EUR.