On Monday, August 26th, the Bucharest Stock Exchange (Romanian: Bursa de Valori București, BVB) hosted the official opening ceremony of the trading session dedicated to the listing of the largest Fidelis government bonds issuance to date, valued at over 3.2 billion lei. The event took place at the BVB headquarters in Bucharest, Romania, where the BVB bell rang during the first half of the event, signaling the official debut of Fidelis bonds on the stock exchange.
Since the relaunch of the Fidelis program in August 2020, the Ministry of Finance has attracted nearly 35 billion lei (7.1 billion euros) from the public through 18 offerings. With 1.7 million transactions recorded so far this year, the BVB is on track to reach a historic record, having already attracted approximately 6.4 billion euros in 2024. Notably, 202 million lei were raised through blood donation campaigns, earning an annual interest rate of 6.8%., with around 11,000 investors contributing to this initiative.
The Ministry of Finance (MF) has raised nearly 1.7 billion lei and over 311 million euros through five issues of government bonds for the public (FIDELIS) as part of the fourth public offering conducted this year on the capital market. This marks the largest sum ever raised by the MF through a public offering of Fidelis government bonds. The number of subscription orders reached a record high of over 20,300, surpassing the 20,000 threshold for the first time.
“We congratulate the Ministry of Finance for the remarkable success achieved in the 18th public offering of Fidelis government bonds. Attracting a record amount of over 3.2 billion lei demonstrates the confidence of Romanian investors in the stability and economic prospects of our country. The growing interest from investors was also evident in the number of subscription orders, which for the first time surpassed the 20,000 threshold. This achievement strengthens the partnership between the Romanian state and the capital market and highlights the importance of diversifying investment portfolios. Through Fidelis government bonds, investors gain access to a stable and attractive asset class, thereby contributing to the development of the Romanian economy,” stated Radu Hanga, President of the Bucharest Stock Exchange’s Board of Directors.
The FIDELIS program offers investors the opportunity to purchase government bonds denominated in both Lei and Euro, featuring a fixed annual coupon. The invested amount is repaid at maturity: after 1 year (including for blood donors) and 5 years for Lei-denominated bonds, and after 1 and 5 years for Euro-denominated bonds. Each bond is priced at 100 Lei for Lei-denominated issues and 100 Euro for Euro-denominated ones. The minimum subscription starts at 5,000 Lei for the 1-year and 5-year Lei bonds, 500 Lei for the special 1-year Lei bond for blood donors, and 1,000 Euro for Euro-denominated bonds.
Looking ahead, Fidelis government bond issuances are scheduled to occur every two months, with the next issuance expected in October 2024. The consortium managing this issuance includes Alpha Bank Romania, BT Capital Partners & Banca Transilvania, Banca Comercială Română, and BRD – Groupe Société Générale.
The event featured the following speakers:
– Radu Hanga – President, Bucharest Stock Exchange
– Alin Andrieș – State Secretary, Ministry of Finance
– Ștefan Nanu – General Director, State Treasury, Ministry of Finance
– Vlad Pintilie – Deputy General Director, BT Capital Partners
– Adrian Tănase – CEO, Bucharest Stock Exchange
Article By: Delia-Maria Tataru
26.08.2024/ Editor, Delia-Maria Tataru
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