“Centenary” state bond issue campaign, a success. MinFin attracted over RON 700 M from population

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Romania’s bond issue for population Centenar (Centenary) was 7 times oversubscribed, Ministry of Finance succeeding to attract more than RON 735 million, while the initial value of the issue was RON 100 million, Prime Minister Dacian Ciolos announced on Friday at the close of the subscription campaign.

“It’s (…) a success in terms of the amount that was raised through this instrument, less known for Romanians so far, but it’s also a success firstly by the fact that over 20,000 people had confidence in this instrument and answered our call,” Romanian PM Ciolos stated.

There were 20,185 investors, 16 times more than last year.

“Of the total subscriptions, 141 were for one title, and 3,098 bought the maximum number of 1,000 titles,” Finance Minister Anca Dragu explained, attending the event, hosted by Bucharest Stock Exchange (BVB).

Investor profile, based on the subscriptions through the four intermediary banks – BCR, BRD, Raiffeisen Bank and Banca Transilvania – shows that 62.5 percent of investors are aged between 50 and 70 years old and also about 60 percent have underwritten between 100 and 1,000 titles.

According to Dragu, 165 students are among investors, 13,794 – active people and 8,328 – retirees. As geographic distribution, 70 percent of investors are from outside Bucharest, compared to 53.4 percent in 2015.

Lucian Anghel, BVB’s President, announced that state bonds following ‘Centenary’ issue will be traded on the Romanian capital market as of August 5, 2016 and bonds holders can trade them at prices quoted in a transparent manner, the first day of listing price is RON 100,57 / share.

“BVB must reform itself to become more involved in developing the capital market and not just wait for the authorities to take action in this respect,” Misu Negritoiu, President of the Romanian Financial Supervisory Authority (ASF) said in his turn. According to him, the Exchange must review a number of issues such as its own direction, objectives, governance system, as well as platform costs.

The bond issue offer started on July 11 and ended on July 29. The titles are due in 2018 when Romania celebrates 100 years since the Great Union.




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