• The Ministry of Finance (MF) attracted over RON 2 bn from the population in the June 2024 edition of the Fidelis program.
• Blood donors bought Fidelis government bonds worth almost RON 274 mn, at an interest rate of 7% p.a.
•  The government bonds issued in this offer were listed on Thursday, July 4, at the Bucharest Stock Exchange, where they are traded transparently, through authorized brokers.

The Ministry of Finance (MF) attracted over RON 2.1 bn (EUR 435.5 mn) through the third primary offer of Fidelis government bonds, intended for the population, held this year through the local capital market. The offer was structured in five issuances: those in the national currency totaled subscriptions worth RON 942.7 mn, and the two issues in euro attracted subscriptions of EUR 245.9 mn. All five Fidelis issuances started trading on Thursday, July 4, on the Main Market of the Bucharest Stock Exchange.

‘For seven editions of Fidelis, we have managed to be close to Romanians and their needs, both financially and socially. I think we have integrated ourselves strongly enough in the capital market both with the titles launched in the usual way, as well as with the tranche dedicated to blood donors. Investors understand and constantly support this initiative, their efforts being rewarded not only by the instruments they invest in, but also by the real social and human support they bring to their peers. In this edition, the tranche dedicated to blood donors attracted the largest amount of all seven special tranches launched so far, also having the largest share in the total amount raised through all types of instruments offered in June. We thank our investors and collaborators, the banks from the brokerage syndicate and BVB, for the trust in the Fidelis government bonds launched by the Ministry of Finance’, stated Marcel Bolos, Ministry of Finance.

‘The stock market has become increasingly attractive for Romanians, and one of the determining factors is the recurrence of the Fidelis program of the Ministry of Finance. We already have almost 192,000 investors at the end of the first quarter, and by the end of this year there is a good chance that we will add around 40,000 more accounts. The Fidelis program is also a reference for companies that, like the Ministry of Finance, can use the capital market to obtain the necessary financing for business development. Moreover, Romanian entrepreneurs have access, until 2025, to non-refundable funds for listing on the stock market through the National Resilience and Recovery Program. Both initiatives, the Fidelis program of the Ministry of Finance and the call for projects <Listing on the stock market of enterprises> recently launched by the Ministry of Investments and European Projects, contribute to the development of the Romanian economy and bring both Romanians and entrepreneurs closer to the stock market’, said Radu Hanga, Bucharest Stock Exchange President.

‘The Ministry of Finance is involved not only as a state authority in the development of the local capital market, but also in the most direct way possible, as an issuer, in using the stock market as a financing mechanism. Romanians financed the state with over RON 31.6 bn through the 17 Fidelis offers carried out from 2020 until now. Many of those who subscribed to Fidelis’ may have interacted with the stock market for the first time, and we are glad that some of them have chosen to become active investors. Congratulations to the Ministry of Finance team and to the brokerage consortium for the successful listing of new Fidelis government bonds’, said Adrian Tanase, Bucharest Stock Exchange CEO.

The primary offer for sale of Fidelis government bonds was carried out by the syndicate formed by BT Capital Partners (Lead Manager and Intermediary) and Banca Transilvania (Distribution Group), as well as Alpha Bank Romania, Banca Comerciala Romana, BRD – Groupe Societe Generale (Intermediaries).

‘We are continuing to build trust in the financial instruments issued by the Ministry of Finance through the capital market. Investors have acquired the knowledge and experience necessary to continue a recurring investment and savings process. Each new issuance strengthens our conviction that the populations’ financial resources can be placed in these listed and liquid instruments and that investors can easily turn to the capital market to diversify their portfolios’, said Vlad Pintilie, Deputy CEO at BT Capital Partners.

‘The success of this issuance proves investors' confidence in the stability and reliability of the Fidelis government bonds, which offer the opportunity to protect and grow their savings in a safe and transparent manner. For many investors, these government bonds also represent a first step towards the broader horizon of stock market investments, and we are pleased to support them in this endeavor. We thank all the investors who participated, and we are confident that Fidelis government bonds will continue to be a reliable investment option in the future, both in the primary and secondary markets’, said Emilian Dobran, Director Equity Trading, Alpha Bank Romania.

‘Fidelis T-bonds confirm their main value as an indispensable portfolio tool for an important part of the retail segment and this is proven by the high audience of the Ministry of Finance’ issues. The reason consists in the current configuration of the financial market with still high interest rates, as well as in the fact that share prices are at historical maximum quotations. In this context, Fidelis T-bonds are the best instrument for temporary cash allocations within investors’ portfolio updates, who are always looking for the best securities’ allocation decisions’, said Irina Neacsu, Executive Director Corporate Finance BRD - Groupe Societe Generale.

‘The state, banks and citizens cooperation is essential in developing a sound financial culture and supporting the capital market. BCR is a long-term partner for Fidelis issuances, an approach that contributes to the development of investment discipline and the growth of the investors’ community. Furthermore, each government bonds listing helps us support the conversation about smart financial choices and creating responsible saving and investment behavior among the population’, said Andrei Ionut Popescu, Executive Director Financial Markets BCR.

During the offer held between June 18-28, Romanians placed 14,642 subscription orders for both RON-denominated and EUR-denominated government bonds. Through the three Fidelis offers held this year, the Ministry of Finance attracted RON 7.1 bn (EUR 1.4 bn) from the population. In total, through the 17 Fidelis offers carried out since August 2020, Romanians financed the state with over RON 31.6 bn (EUR 6.4 bn).

The details are available in the next table:

Useful information about FIDELIS government bonds - questions and answers

Where can I find the bonds 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.

If the holders want to keep government bonds, they have two options:

• They will receive the interest annually, and at maturity the principal will be returned to a bank account sent to the Central Securities Depository, if the subscription was made through a bank or brokerage company, without signing a financial investment services contract.
• They can open a trading account at a bank or brokerage company, by signing a financial investment services contract and can transfer the government bonds from the Central Securities Depository to this trading account. In this case, the holders will have the government bonds in the investment account in which they will receive the annual coupon, and when the bonds will mature, the principal will be returned to them.

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. In order to be able to buy or sell, investors must have a trading account with a bank or brokerage firm. Any holder of FIDELIS government bonds can trade government bonds starting with March 25th, 2020. 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, www.bvb.ro, by entering the symbols below in the [Search] box on the main page:

R2507B – for the blood donors, 1-yr maturity government bonds denominated in RON

R2507A – for 1-yr maturity government bonds denominated in RON

R2707A – for 3-yrs maturity government bonds denominated in RON

R2507AE – for 1-yr maturity government bonds denominated in EUR

R2907AE – for 5-yrs maturity government bonds denominated in EUR.

For other information: Natalia Negru Botezan, PR&Media Relations Bucharest Stock Exchange, natalia.botezan@bvb.ro