Romanians invest 555 million Euro in the second IPO for governmental bonds for retail investors in 2020 by MFP

The Ministry of Public Finance (MFP) attracted 1.3 billion RON and 289 million Euro (in a total amount of 2.7 billion RON – 555 million Euro), through the second IPO for the sale of government bonds for the population (FIDELIS) carried out this year through the Bucharest Stock Exchange (BVB) systems.

Thus, the value of the financing rounds carried out this year at BVB by the Ministry of Public Finance amounted to 4.74 billion RON – almost one billion Euro – (2.52 billion RON and 457.4 million Euro).

In the second IPO, unfolded between November 9 and 27, Romanians placed almost 13,300 subscription orders for both government bonds denominated in RON and for those in EUR. The offer included government bonds in RON with maturities of one and three years, respectively, and an issue in EUR, maturing in five years.

The annual interest rate for the bonds denominated in EUR is 1.8% p.a., while for the bonds denominated in RON the annual interest rate is 3.5% p.a. for those maturing in 2021 and 4% p.a. for those maturing in 2023.

The government bonds in the FIDELIS issue started trading on BVB on December 7, and can be bought or sold in a transparent environment at any time through authorized intermediaries.

“The success of the second offer of government bonds for retail investors, which has exceeded the previous one from the summer, proves that it was a very good decision to come back to the capital market with such instruments. To attract almost 1 billion euros from the population, in a difficult context for everyone, is proof that Romanians trust the Ministry of Public Finance and, implicitly, the Romanian State. This program continued not only due to its success, but also because it is a strategy of the State to finance itself from the citizens. Basically, by purchasing government bonds, the citizens participate directly in investment programs in the economy and we are all interested in doing well. There are various strategies in the world, and we see that the countries that are financing themselves in a significant proportion from their local resources have a greater stability of the public debt”, stated Florin Citu, Minister of Public Finance.