The Ministry of Finance launches a new Fidelis government bonds public offer for individual investors on Bucharest Stock Exchange

6/18/2021

  • The Ministry of Finance is carrying out on Bucharest Stock Exchange, between June 22nd and July 12th, a new public offer for the sale of Fidelis government bonds for individual investors in RON and EUR
  • It is the fourth Fidelis public offer carried out by the Ministry of Finance on the capital market in almost one year.  Through the first three offers carried out in 2020 and 2021, the Ministry of Finance attracted from the population RON 6.1bn (almost EUR 1.3bn)

 

The Ministry of Finance (MF) launches on Bucharest Stock Exchange (BVB) a new issue of Fidelis government bonds, for the population. It is the fourth Fidelis public offer held on the local capital market in almost one year. Through the first three offers carried out since July 2020, the Ministry of Finance attracted from the population RON 6.1bn (almost EUR 1.3 bn).

„The Romanian state, with the support of BT Capital Partners & Banca Transilvania, Banca Comerciala Romana and BRD - Groupe Societe Generale, continues to issue government bonds under the Fidelis program, an attractive savings instrument that has repeatedly enjoyed the confidence of individual investors. The advantageous conditions of this program provide the population with a simple and safe way to become familiar with the mechanisms of the capital market”, said Alexandru Nazare, 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 June 22nd and July 12th, 2021, through BT Capital Partners & Banca Transilvania, BCR and BRD - Groupe Societe Generale.

„In almost a year since the first Fidelis offering in 2020 and, judging by the amount of funds attracted, this program has proven to be a very useful one for the Ministry of Finance, the capital market, but especially for those who choose to invest their money in these financial instruments. Fidelis government bonds offer to investors an additional advantage, dynamism, and flexibility in their portfolio management by the fact that these bonds can be traded at any time on Bucharest Stock Exchange. The State, through the Ministry of Finance, proves its strong commitment for the development of the Romanian capital market”, said Radu Hanga, Bucharest Stock Exchange President.

„Government bonds are suitable investments for those investors who want to add very low risk financial instruments to their portfolios. So far, the success of the Fidelis program shows us that more and more people have understood the usefulness of these government bonds and have placed their money with confidence. Fidelis government bonds are, at the same time, a first investment on the capital market for those who have not been willing to take this step until now”, said Adrian Tanase, Bucharest Stock Exchange CEO.

The details are available in the table below:

Criteria

RON issue 2022

RON issue 2023

EUR issue 2023

ISIN

RO5O4PH7MDL6

ROTWSR4X3BI9

ROWZDXY07216

Ticker

R2207A

R2307A

R2307AE

Maturity

1yr

2yrs

2yrs

Yearly interest rate

2.95%

3.25%

1%

Offering period

June 22nd – July 12th, 2021

June 22nd – July 12th, 2021

June 22nd – July 12th, 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 (July 12th, 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 July 16th, 2021.