- The Ministry of Finance (MF) raised RON 847 mn (EUR 162mn), through the ninth IPO for Fidelis government bonds held this year on the capital market
- The seven Fidelis government bonds issued this month started trading on Bucharest Stock Exchange (BVB) on Thursday, September 17th
- Through the 40 offers held since August 2020, the Ministry of Finance attracted RON 72.4bn (EUR 14.5bn) from retail investors, of which over RON 10.4bn (nearly EUR 2bn) is represented solely by this year's issues
The Ministry of Finance (MF) attracted, in September, RON 847mn (RON 254.7mn for bonds issued in RON and EUR 113.7mn for bonds issued in EUR), through the ninth offer for selling government bonds dedicated to retail investors (FIDELIS) held this year through the Bucharest Stock Exchange's (BVB) systems.
The primary offering of Fidelis government bonds took place between September 4 - 11, and it was intermediated by the syndicate consisting by BT Capital Partners (Lead Manager), Banca Comerciala Romana, BRD - Groupe Societe Generale, TradeVille and UniCredit Bank (Intermediaries) and Banca Transilvania, Salt Bank, and Libra Internet Bank (Distribution Group).
As part of this offering, which comprised 7 government bond issues - four in RON and three in Euro, with an issue for blood donors in each currency, Romanians placed a total of 11.492 subscription orders.
The details are available in the next table:
Criteria | RON issue for blood donors 2yrs | RON issue 2yrs | RON issue 4yrs | RON issue 10yrs | EUR issue for blood donors 3yrs | EUR issue 3yrs | EUR issue 10yrs |
ISIN | RO1FVVI0XY00 | ROB2BPEPGP79 | ROKW8NZV41W2 | ROPQYX5URX87 | ROCXOMVVNY94 | ROPVEE83VPD8 | RO9XZ63W8W79 |
Symbol | R2809B | R2809A | R3009A | R3609A | R2909BE | R2909AE | R3609AE |
Yearly interest rate | 7,30% p.a. | 6,30% p.a. | 6,90% p.a. | 7,50% p.a. | 5,00% p.a. | 4,00% p.a. | 6,30% p.a. |
Amount raised (millions) | 52 | 100 | 42 | 60.5 | 6.4 | 34.2 | 73 |
Nominal value | RON 100 | RON 100 | RON 100 | RON 100 | EUR 100 | EUR 100 | EUR 100 |
Minimum subscription value | RON 500 | RON 5,000 | RON 5,000 | RON 5,000 | EUR 100 | 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 that 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.
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. To be able to buy or sell, investors must have a trading account with a bank or brokerage firm. 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, https://www.bvb.ro, by entering the symbols below in the [Search] box on the main page:
R2809B - for the blood donors, 2yrs maturity government bonds denominated in RON
R2809A - for the 2yrs maturity government bonds denominated in RON
R3009A - for the 4yrs maturity government bonds denominated in RON
R3609A - for the 10yrs maturity government bonds denominated in RON
R2909BE - for the blood donors, 3yrs maturity government bonds denominated in EUR
R2909AE - for the 3yrs maturity government bonds denominated in EUR
R3609AE - for 10yrs maturity government bonds denominated in EUR.