Government bonds for retail investors issued by the Romanian Finance Ministry start trading on Bucharest Stock Exchange after a total subscription of 422 million Euro

The Ministry of Public Finance (MFP) attracted a total of 422 million Euro through the primary offer for the sale of government bonds for the population (FIDELIS), which took place between July 15th and August 7th, through the Bucharest Stock Exchange (BVB) systems.

The offer included two issues denominated in the national currency, with 2-yrs and 4-yrs maturities, and one issue denominated in EUR, with a 5-yrs maturity. A premiere is the issue denominated in EUR: it is the first issue of government bonds denominated in the European currency launched by the Ministry of Public Finance for the population. The other two issues of government bonds, issued in the local currency, represent the first issues for the population in the last four years listed on Bucharest Stock Exchange. The annual interest rate for the bonds denominated in EUR is 2% p.a., while for the bonds denominated in RON the annual interest rate is 4% p.a. for those maturing in 2022 and 4.5% p.a. for those maturing in 2024.

The government bonds in the FIDELIS issue started trading on BVB on Thursday, August 13th, and can be bought or sold in a transparent environment at any time through authorized intermediaries.

“We are glad that the Ministry of Public Finance has chosen to attract financing through the capital market, and the success of this primary offer proves once again that the stock market is an essential channel for financing the economy, for the state and for the development of companies. We have demonstrated this in recent years, as evidenced by the rounds of financing attracted by companies, through issues of bonds and shares, of over EUR 1bn only last year, and now even by the Ministry of Public Finance. The success of the FIDELIS issue is impressive because it is about money attracted only from individuals. If we take into account the existing capital in pension funds and mutual funds, then it is clear that the Romanian capital market brings a real benefit for all those who want to take advantage of the opportunities that this health crisis has created. The Romanian capital market has become more agile and investors are more attentive to the opportunities that come on the market, have capital and take advantage of opportunities even in times of uncertainty”, said BVBs’ Chairman of the Board, Radu Hanga.

The primary offer for the sale of FIDELIS government bonds was intermediated by the Consortium formed by BT Capital Partners (Lead Manager&Intermediary) and Banca Transilvania (Distribution Group), Banca Comerciala Romana and BRD – Groupe Societe Generale (Intermediaries). The government bonds could also be purchased through eight eligible participants.