The Ministry of Finance reached new records on the BVB in the Fidelis government bond offering in February almost RON 4.3bn and over 44 000 subscription orders

The Ministry of Finance (MF) attracted over RON 2.3bn and EUR 390mn (values totaling over RON 4.3bn – EUR 864,6mn), through the first primary offer for the sale of government bonds for the retail investors (FIDELIS) held this year through Bucharest Stock Exchange’s (BVB) systems.

‘The first FIDELIS issue of this year sets a new record since the launch of the program, amid the increased interest of Romanians in government securities issued by the Ministry of Finance. The consistent demand for both RON and EUR tranches, along with investments with long maturities of 3, 5 and 7 years, reflects the confidence in government policies and the increase in the level of financial education among the population. Through monthly issues, we remain a trusted partner for investors, while supporting social causes and offering, together with our partners for over 5 years, safe and advantageous financial instruments’, stated Tanczos Barna, Deputy Prime Minister and Minister of Finance.

 

‘We congratulate the Ministry of Finance and its partners on the success of the Fidelis program, the consortium of intermediaries and Rock FM, whose cooperation made these results possible. The interest shown by investors in Fidelis government bonds is impressive and, at the same time, demonstrates their confidence in the prospects of the Romanian economy and in the State’s ability to honor its financial commitments. The success of this issue and the previous ones underlines, once again, the importance of the capital market for financing the Romanian State and for the development of the national economy. The close cooperation between the Ministry of Finance and the local capital market allowed the creation of an attractive and accessible investment instrument for Romanians and, at the same time, led to the diversification of the sources of financing accessed by the Romanian State. We are convinced that the partnership between the Romanian State and the capital market will continue to develop, bringing benefits to both the State and the investors at BVB’, said Radu Hanga, Bucharest Stock Exchange President.

‘The remarkable result of this issue confirms once again the confidence of Romanians in the financial instruments listed on the Bucharest Stock Exchange and in the opportunities offered by Fidelis government bonds. We see a particular interest in the 1-year lei and the 7-year euro maturities, which represented over half of the total value attracted. This demonstrates the maturation of the Romanian capital market and the increased appetite of individual investors for safe and attractive investments. We congratulate the Ministry of Finance for this new success and for its commitment to support the development the Romanian financial market. Fidelis government bonds remain an essential pillar for diversifying Romanians’ investments and stimulating savings through the capital market, and BVB will continue to cooperate with financial institutions to offer solid and accessible tools to all investors for managing their portfolios’, 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), Alpha Bank Romania, Banca Comerciala Romana, BRD – Groupe Societe Generale and TradeVille (Intermediaries) and  Banca Transilvania, Libra Internet Bank (Distribution Group). The government bonds could also be purchased through 10 eligible participants.

‘Already at the 21st issue in the last five years, Fidelis T-bonds became an indispensable tool in retail investors’ efforts to optimize portfolio management decisions. At the same time, Fidelis T-bonds have an increasingly important share in the financing volumes of the Romanian State, being also a benchmark to which the classic savings products in the banking system are related’, said Irina Neacsu, BRD – Groupe Societe Generale Corporate Finance Executive Director.

During this offer, which took place between February 7^th and 14^th, Romanians placed a record number or subscription orders, 44,169, for both RON denominated and EUR denominated government bonds.

• The Ministry of Finance (MF) attracted over RON 2.3bn and EUR 390mn through six issues of government bonds for retail investors (Fidelis), within the first offering held this year on the capital market.
• This is the largest amount raised by the Ministry of Finance through a public offering for Fidelis government bonds, surpassing the previous record, from October 2024, of almost RON 3.5bn.
• The number of subscription orders reached a new record – 44,169.
• The number of orders placed by blood donors exceeded 5,000 for the first time, as they placed 5,726 orders, worth RON 537mn, at an interest rate of 7.95% p.a..
• The Fidelis government bonds issued in February started trading on Bucharest Stock Exchange, Thursday, February 20.
• The next Fidelis government bond offering is expected to begin in the first decade of March.
• Through the 21 offers held since August 2020, the Ministry of Finance attracted over RON 45bn (EUR 9bn) from the retail investors.

The details are available in the next table:

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 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. 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:

R2602B – for the blood donors, 1-yr maturity government bonds denominated in RON

R2602A – for the 1-yr maturity government bonds denominated in RON

R2802A – for the 3-yrs maturity government bonds denominated in RON

R3002A – for the 5-yrs maturity government bonds denominated in RON

R2702AE – for the 2-yrs maturity government bonds denominated in EUR

R3202AE – for 7-yrs maturity government bonds denominated in EUR.