The Ministry of Finance continues the issues of FIDELIS government bonds for retail investors and launches a new sale offer on Bucharest Stock Exchange during September 13th - October 1st

9/10/2021

  • The Ministry of Finance is carrying out a new public offer for the sale of Fidelis government bonds for individual investors on Bucharest Stock Exchange, between September 13th and October 1st
  • It is the fifth Fidelis public offer carried out by the Ministry of Finance on the capital market starting with July 2020.  Through the first four offers carried out in 2020 and 2021, the Ministry of Finance attracted from the retail investors more than RON 7bn (over EUR 1.4bn)

 

The Ministry of Finance (MF) continues the issues of FIDELIS government bonds for retail investors and launches on Bucharest Stock Exchange (BVB) the fifth issue since July 2020. Through the first four offers, the Ministry of Finance attracted from the retail investors more than RON 7bn (over EUR 1.4bn).

‘The Ministry of Finance continues issuing government bonds addressed to the population through the FIDELIS Program. Investors should be aware that this savings instrument offers advantageous interest rates and is an attractive way of saving both in lei and in euros, for which no fees are charged in the underwriting process, and capital gains and interest income are non-taxable. By continuing to issue government securities under this program, the Ministry of Finance reaffirms its commitment to provide individuals with attractive savings options, while diversifying the state funding sources‘, said Dan Vilceanu, Ministry of Finance.

Resident and non-resident individuals over the age of 18 years can subscribe Fidelis government bonds denominated in RON and EUR within the public sale offer carried out on Bucharest Stock Exchange, between September 13th and October 1st, 2021, through BT Capital Partners & Banca Transilvania, BCR and BRD - Groupe Societe Generale.

`We are glad that the Ministry of Finance continues the FIDELIS government bond issuance program, keeping the quarterly cadence of these offers, which has already become a tradition. Looking at everything that has happened on the capital market since the beginning of the pandemic, at the numerous financing rounds carried out by both the state and entrepreneurial companies, which accumulate over 2.3 billion euros, we can say with firm belief that the stock market has proven again that it is able to support the development of the economy and absorb offers of considerable sizes`, said Radu Hanga, Bucharest Stock Exchange President.

`Bearing in mind the success of the previous four offers, carried out in different market conditions, the outbreak of the pandemic, the flattening of the first waves, the appearance of other waves, IPOs carried out at the same time for shares and government securities, reveals that the Ministry of Finance and the brokerage syndicate found the best suited formula so that this tradition of FIDELIS government bond issues continues and, as well, to provide investors with a range as diverse as possible of instruments for their investments and, at the same time, to attract new investors to the market. This range of instruments will expand further, once the CCP is operational, which is estimated to be in the second half of next year`, said Adrian Tanase, Bucharest Stock Exchange CEO.

The details 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.

1.6% p.a.

Offering period

September 13th – October 1st, 2021

September 13th – October 1st, 2021

September 13th – October 1st, 2021

Nominal value / government bond

RON 100

RON 100

EUR 100

Minimum subscription value

RON 5,000

RON 5,000

EUR 1,000

 

Government bonds for the population are remunerated with annual interest rates above the level of government bonds traded on the interbank secondary market, according to the Ministry of Finance. There are not any fees charged by the intermediary banks for subscribing to Fidelis government bonds, and the income obtained, both from interest and from capital gains, is non-taxable. Also, the subscriptions can be made through Eligible Participants, which represent any intermediary authorized by the Financial Supervisory Authority, which is financial investment company or credit institution registered as a participant in the Bucharest Stock Exchange trading system that signed the commitment regarding the conditions of the offer, the provisions of the issue prospectus and sent the commitment to the Lead Manager. The intermediary syndicate of the offer includes BT Capital Partners (Lead Manager) & Banca Transilvania, BCR, BRD.

The allocation of the government bonds subscribed within the offer will be made on the date of allocation (October 1st, 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 BVB trading system dedicated to public offers (government bonds).

The estimated first trading day is October 7th, 2021.

More details can be found on BVB website, at this LINK.