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| October 20, 2021 |
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The Ministry of Finance lists on BVB a new issue of FIDELIS government bonds with 3 different maturities and a cumulative value of almost RON 943mn

10/7/2021

  • The Ministry of Finance (MF) attracted RON 650.5mn and EUR 59mn through an issue of government bonds for individual investors (FIDELIS), with three different maturities, sold on the capital market. It is the fifth offer of government securities carried out by the Ministry of Finance on the stock exchange in the last five quarters.
  • Through the five offers carried out in 2020 and 2021, the Ministry of Finance attracted from individual investors almost RON 8bn (EUR 1.6bn).
  • The government securities can be traded on BVB as of Thursday, October 7th, in a transparent manner, through authorized intermediaries.

 

The Ministry of Finance (MF) attracted RON 650.5mn and EUR 59mn (values amounting RON 943mn – EUR 190.5mn), through the fifth primary offer for sale of government securities for the individual investors (FIDELIS) carried out in the last 15 months through Bucharest Stock Exchange’s (BVB) systems.

Thus, the value of the five rounds of financing carried out in the last 15 months on Bucharest Stock Exchange by the Ministry of Finance reaches almost RON 8bn (EUR 1.6bn).

`The active presence of individuals as investors in these financial instruments offered by the Ministry of Finance confirms the attractiveness of the FIDELIS Program among the population. The resumption of FIDELIS issues starting with 2020 and their quarterly promotion in the economic and social context crossed by many pressures at national and global level, as well as the interest shown by individual investors, shows the growing orientation of the population towards a diversification behavior of saving and to use of capital market-specific mechanisms. Collaboration with our partners in providing these financial instruments and trading mechanisms contributes significantly to the widest possible promotion and more active involvement of the population in capital market mechanisms`, stated Dan Vilceanu, Ministry of Finance.

`The last two years have fully demonstrated that the Stock Exchange is a viable channel for financing, whether we are talking about private companies or the Romanian State, through the Ministry of Finance. Proof of this are the 70 rounds of financing, worth over 2.5 billion euros, carried out through the capital market, both by the Ministry of Finance, through the issuance of FIDELIS government securities, and by entrepreneurial companies. We can say that the offers for the sale of FIDELIS government securities are a success considering the amounts attracted and the estimates regarding the evolution of inflation in Romania, but also the fact that these government securities are more appropriate for those who want to take the first step on the capital market, offering the lowest return-risk ratio`, said Radu Hanga, Bucharest Stock Exchange President.

`By continuing the issuance of FIDELIS government securities on a quarterly basis, as well as by the constructive dialogue we have on other issues, the Ministry of Finance proves its commitment to contribute to the development of the capital market, being one of our main partners in this direction. Looking at the almost 8,000 subscription orders in this offer of government securities, almost two thirds are for amounts up to 61,000 lei, which shows that more and more Romanians choose to save using government securities. We aim to offer investors as many tools as possible to trade and manage their portfolios, and with the launch of the Central Counterparty, the range of such instruments will diversify even more`, stated Adrian Tanase, Bucharest Stock Exchange CEO.

The primary offer for the sale of FIDELIS government securities was carried by the syndicate formed by BT Capital Partners (Lead Manager and Intermediary) and Banca Transilvania (Distribution Group) and Banca Comerciala Romana and BRD - Groupe Societe Generale (Intermediaries). The government securities could also be purchased through eligible participants.

`A new issue successfully closed is a new step towards diversifying investment and saving solutions. We remain optimistic about future programs and confident that the recurrence of such quarterly issues is beneficial to investors and the capital market in general`, said Daniela Secara, BT Capital Partners CEO.

`The five FIDELIS offers for the sale of government bonds carried out in the last two years represent a sign of confidence in such investments, both from the Government and from the Romanians who have chosen to place their savings in trading instruments that will continue to create added value by being listed on the stock exchange. Subscribing to such government securities takes a few minutes from the moment a buyer reaches the bank and we will intensify efforts to make this process as easy and accessible as possible for a larger number of investors`, stated Valentin Popovici, Executive Director of Financial Markets, BCR.

`Thanks to systematic issuance, FIDELIS government bonds are already an indispensable tool for individual investors who have the possibility of optimized portfolio management in terms of operational reallocations between different financial instruments. In addition to being a benchmark for reporting the performance of various financial instruments, FIDELIS government securities are appropriate to be available to retail investors, including in periods of lower visibility in the economy or on the local or international financial markets`, said Irina Neacsu, Executive Director Corporate Finance, BRD – Groupe Societe Generale.

In the fifth offer, carried out between September 13th and October 1st, Romanians placed almost 7,908 subscription orders for both government securities denominated in RON and those in EUR. The offer included government securities in RON with maturities of one and three years, as well as an issue in EUR, with a maturity of five years.

Details of each issue are available in the table below:

Criteria

RON issue 2022

RON issue 2024

EUR issue 2026

ISIN

RO6NYMCNUG41

RO2J5BXS61S1

ROQHRYERUPM6

Ticker

R2210A

R2410A

R2610AE

Maturity

1yr

3yrs

5yrs

Yearly interest rate

3.25% p.a.

3.75% p.a.

1.60% p.a.

Nominal value / government bond

RON 100

RON 100

EUR 100

Number of bonds

4,830,855

1,673,796

590,718

Total value of the issue

RON 483,085,500

RON 167,379,600

EUR 59,071,800

 

The government bonds in the FIDELIS issue started trading on BVB on Thursday, October 7th, and can be bought or sold in a transparent environment at any time through authorized intermediaries.

The initial subscription of the bonds was not commissioned by intermediaries, and the income obtained from both interest and capital gains is not taxable. The minimum subscription threshold was RON 5,000, respectively EUR 1,000. 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.

 

 

For additional information, please contact:

Stefan Pompi Musgociu, e-mail: stefan.musgociu@bvb.ro, phone: 0730.255.030