The Ministry of Finance launched a new public offer for the sale of FIDELIS state bonds for the population in RON and EUR on Bucharest Stock Exchange

3/1/2021

  • The Ministry of Finance (MF) carries out, between March 1st and 19th, a new public offer for the sale of Fidelis government bonds for the population in RON and EUR, on the Bucharest Stock Exchange (BVB), following the success of the offers carried out in 2020, through which it attracted RON 4.74bn (almost EUR 1bn).
  • Alexandru Nazare, Ministry of Finance:
    • ”The success of the Fidelis government bond issues launched last year with the support of BT Capital Partners / Banca Transilvania, BCR and BRD confirmed the trust that Romanians have in these savings instruments dedicated to individuals, in advantageous conditions. The Romanian state continues these issues this year as well, both at the request of individual investors, as well as to familiarize the population to familiarize the population with the mechanisms of the capital market”
  • Radu Hanga, BVB Chairman of the Board:
    • 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 the Romanians, because through the acquisition of government bonds, on one hand, citizens participate directly in investment programs in the economy, and on the other hand, the amounts placed in government securities bring them a better return”.
  • Adrian Tanase, BVB CEO:
    • ”Investing in government securities can be a first step in the world of investment for many Romanians. We are talking about an investment with a very low risk degree and which, once listed, gives the investor flexibility in managing his/ her money, so he/ she can sell it whenever he/ she wants, or he/ she can buy more”.

 

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.

More information is available on Bucharest Stock Exchange website, at this LINK.