The Ministry of Finance launched a new public offer for the sale of FIDELIS state bonds on BVB

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The Ministry of Finance (MF) returns to the capital market with three new issues of Fidelis government bonds for the population, following the success of public sale offers in 2020, through which it attracted RON 4.74bn (almost EUR 1bn). The new offer for the sale of government bonds in the Fidelis program is carried out on Bucharest Stock Exchange (BVB) between March 1st and 19th, when government bonds denominated in RON with 1-yr and 3-yrs maturity and in EUR with 5-yrs maturity.

Criterion RON issue 2022 RON issue 2024 EUR issue 2026
ISIN ROOREDJL6FK8 ROL2HKIVYIW5 ROVJSKSV4CU2
Ticker R2203A R2403A R2603AE
Maturity March 24th, 2022 March 24th, 2024 March 24th , 2026
Yearly interest rate 2,85% 3,10% 1,55%
Offering period March 1st – 19th, 2021 March 1st – 19th, 2021 March 1st – 19th, 2021
Nominal value / government bond RON 100 RON 100 EUR 100
Minimum subscription value RON 5,000 RON 5,000 EUR 1,000

“The offer launched in March by the Ministry of Finance is part of our goal to develop the government bond market for the population through savings offers, even after a challenging year such as 2020, proving that the demand for cost-effective alternatives offered by the Romanian state is growing. We thank our partners credit institutions and intermediaries who participate with all their involvement in the Fidelis offers. We thank BVB for the trust in the instruments launched by the Ministry of Finance and for making the Fidelis government bonds available to be traded by individual investors”, stated Alexandru Nazare, Ministry of Finance.

”We are glad that the Ministry of Finance continues the Fidelis program for government bonds for the population because it is a solid reconfirmation of the fact that the stock exchange is a viable financing channel for both companies and the Romanian State. The amounts placed by Romanians in the bids for Fidelis government bonds carried out last year are impressive, because we are talking about almost one billion euros. At the same time, the continuation of this program is a reconfirmation of the very good partnership between the Romanian State and the capital market and whose final beneficiaries are Romanians, because by purchasing government bonds, on one hand, citizens participate directly in investment programs, and on the other hand, the amounts placed in government bonds give them a better return than if they were placed in bank deposits”, stated Radu Hanga, Chairman of the Board, Bucharest Stock Exchange.

”Investing in government bonds can be a first step in the world of investment for many Romanians. We are talking about a placement with a very low risk degree and which, once listed, offers the investor a flexibility in managing his money, so that he/ she can sell it whenever he/ she wants, or he/ she can buy more. This flexibility is already visible in the trading volumes of Fidelis government securities issued last year, with investors trading them on a daily basis. We want more and more Romanians to look for the most profitable investments for their savings, and through government securities for the population, we have a wide range of such investments”, said Adrian Tanase, Bucharest Stock Exchange CEO.

The issues target exclusively the natural investors, and the minimum subscription value is RON 5,000 for the RON issues, or EUR 1,000 for the EUR issues. According to the Romanian legislation in force, the interests and capital gains from the holding and trading of government bonds issued by the Romanian State through the Ministry of Public Finance are non-taxable income.

The Government bonds are offered in Romania exclusively to resident and non-resident individuals, except for persons who have not reached the age of 18 until the closing date of the offer inclusively. The intermediary syndicate of the offer includes: BT Capital Partners (Lead Manager) & Banca Transilvania, BCR, BRD. Also, subscriptions can be made through Eligible Participants, which represent any intermediary (other than BTCP, BCR and BRD) authorized by the Financial Supervisory Authority (ASF), which is financial investment company or credit institution accepted as a participant in the trading system of the Bucharest Stock Exchange that signed the commitment regarding the observance of the conditions of the offer and the provisions of the issue prospectus and sent the commitment to the Lead Manager.

The allocation of the government bonds subscribed within the offer will be made on the date of allocation (March 19th, 2021), and the final number of government bonds offered will be established by the issuer in consultation with the intermediation 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 the trading system of BVB dedicated to public offers (government bonds). The allocation of the government bonds by the intermediary syndicate together with the issuer is mandatory and binding on investors.

The first trading day is estimated on March 25th, 2021.

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