- The Ministry of Finance (MF) attracted RON 844mn and EUR 190mn through five issues of government bonds for retail investors (Fidelis), within the first offer held this year on the capital market.
- Blood donors bought Fidelis government bonds worth over RON 135mn, at an interest rate of 7% p.a.
- Through the 15 offers held since August 2020, the Ministry of Finance attracted over RON 26.2bn (EUR 5.3bn) from the retail investors.
- The Government bonds are traded on the Bucharest Stock Exchange transparently, through authorized intermediaries.
The Ministry of Finance (MF) attracted RON 843.9mn and EUR 190.5mn (values totaling RON 1.8bn – EUR 360.3mn), through the first primary offer for the sale of government bonds for the retail investors (FIDELIS) held this year through Bucharest Stock Exchange’s (BVB) systems.
‘There are several positive aspects that I noted at the end of each of the last Fidelis editions. First of all, it is obvious that the awareness degree of the advantages of investing their savings has increased among Romanians. On the other hand, I am glad that investors' confidence in our ability to offer advantageous instruments is maintained, but also that we manage to play a prominent role in the development of the local capital market. Perhaps most importantly, the spirit of solidarity of the donor-investor community has established itself. Even though we reduced the subscription period by a week, they still exceeded the number of all editions: 1,405 persons donated blood and saved more than 4,200 lives, and also heaving the best offer of the issuance’, stated Marcel Bolos, Ministry of Finance.
‘The State is an important partner of the capital market, both through the support it offers, through its institutions, in the steps we undertake to accelerate the development of the market, and through this consistency in carrying out Fidelis government sales offers by The Ministry of Finance. These government bonds have, on the one hand, a component of diversification of funding sources by the Treasury, and, on the other hand, they are a financial education tool for many Romanians who, by investing in Fidelis, take a first step in the world of investment. These aspects weighed heavily in our decision to award the Ministry of Finance for this consistency in the Fidelis government bond issue’, said Radu Hanga, Bucharest Stock Exchange President.
‘We congratulate the Ministry of Finance, the brokerage syndicate and their media partner RockFM for the success of a new issue of Fidelis government bonds and for this symbiosis of the tranche dedicated to donors, between the social and the investment component. The offer of financial instruments available for investment on the Bucharest Stock Exchange increases with each new listing, of equity or bonds, and in recent years it has diversified a lot, through the more than 190 listings, including the municipal bonds that start to be issued by local authorities. The range of financial instruments will expand even more with the operationalization of CCP.RO Bucharest and the relaunch of the derivatives market, for which the Financial Supervisory Authority approved the authorization request’, 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.
‘We have the opportunity to highlight our ongoing contribution, as partner in this program, to the financial education and healthy saving and investing culture that has become characteristic of retail investors in recent years, since the launch of the Fidelis government bond issuances for the population project through BVB. A new successful offering proves the attractiveness of the instruments in the current market environment and the recurrence with which investors have returned to new issuances following accumulation of disposable income and maturity of previous editions’, said Daniela Secara, BT Capital Partners CEO.
‘The issuances of Fidelis government bonds for individuals continue to be received positively by retail investors attracted by savings and portfolio diversification opportunities. Thus, the significant and stable demand for those financial instruments successfully supports the strategic endeavor of the Ministry of Finance to obtain financing via the Bucharest Stock Exchange’, said Nicoleta Ruxandescu, Alpha Bank Romania Investment and Capital Markets Unit Director.
‘The regular Fidelis T-bonds issues have succeeded in consolidating a financial instrument that has become indispensable for retail investors in optimizing their portfolio management decisions. In addition, Fidelis securities constitute a long-awaited benchmark for reporting the earnings of investments in corporate bonds and shares at a risk-free rate accessible to small investors who manage their own securities portfolios. On the other hand, the pivot effect of Fidelis securities should not be neglected for those who invest for the first time in securities and who can later take the step towards investments in bonds and shares listed on the BVB, this representing the most sustainable way of building of a strong retail segment for capital market’ securities’, said Irina Neacsu, BRD - Groupe Societe Generale Corporate Finance Executive Director.
‘We prioritize financial health, and we are glad to be partners for the Ministry of Finance, taking into consideration that Fidelis issuances encourages responsible financial behavior and facilitates access to financial investment instruments for all Romanians. For BCR, prosperity is built through financial literacy and capital market development, and our common role is to grow the saving and investments culture, so that every Romanian to be able to make smart financial choices for their future’, said Andrei Ionut Popescu, Executive Director Financial Markets BCR.
During this offer, which took place between February 21 and March 1, Romanians placed almost 14,000 subscription orders for both RON – denominated and EUR – denominated government bonds.
The details are available in the next table:
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Criteria
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RON issue for blood donors, with maturity in March 2025
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RON issue with maturity in March 2025
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RON issue with maturity in March 2027
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EUR issue with maturity in March 2025
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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
|
135,336,000
|
358,263,200
|
350,312,200
|
118,006,200
|
72,532,100
|
|
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.
Useful information about FIDELIS government bonds - questions and answers
Where can I find the bonds 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. 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:
R2503B – for the blood donors, 1-yr maturity government bonds denominated in RON
R2503A – for 1-yr maturity government bonds denominated in RON
R2703A – for 3-yrs maturity government bonds denominated in RON
R2503AE – for 1-yr maturity government bonds denominated in EUR
R2903AE – for 5-yrs maturity government bonds denominated in EUR.
