The Ministry of Finance attracted RON 1.65bn in July from investors on BVB through the sixth issue of Fidelis government bonds this year

The Ministry of Finance (MF) attracted RON 681.3mn and EUR 192mn through eight issues of government bonds for retail investors (Fidelis), within the sixth offering held this year on the capital market. The Fidelis government bonds issued in July started trading on Bucharest Stock Exchange, Thursday, July 17th. The next Fidelis government bond offering is expected to begin in the first decade of August. Through the 26 offers held since August 2020, the Ministry of Finance attracted RON 53.3bn (EUR 10.8bn) from the retail investors, amount of which RON 12.3bn (EUR 2.5bn) were attracted this year. The Ministry of Finance (MF) attracted RON 681.3mn and EUR 192mn through eight issues of government bonds for retail investors (Fidelis), within the sixth offering held this year on the capital market. ‘We are pleased that the interest in FIDELIS government bonds remains high, with a number of subscriptions that, up to date, has exceeded the total number of operations for the entire year 2024. It is a confirmation of investors' confidence in this instrument and the increasing attractiveness of the Romanian capital market. This year, we introduced for the first time the possibility for blood donors to access bonds in euros, expanding the social component of the program. This decision comes in continuation of the Ministry of Finance's efforts to transform the FIDELIS program not only into a savings instrument, but also into a platform for capitalizing civic involvement. Blood donors are examples of social responsibility, and their priority and extended access to government bonds represents a form of public recognition and an incentive to continue this essential gesture for the Romanian medical system. The impact of this measure is twofold: it supports the liquidity of the capital market and, at the same time, encourages a culture of solidarity and active participation in economic and social life. The Ministry of Finance continues to actively support the development of the capital market, through measures that contribute to increasing Romania's investment attractiveness, such as measures to increase fiscal transparency and predictability, supporting the listing of state-owned companies, constant dialogue to attract institutional and international investors, and expanding access to modern savings and investment instruments’, stated Alexandru Nazare, Minister of Finance.   ‘Since the launch of this program in August 2020, Fidelis government bonds have become an important pillar in building the confidence of Romanian investors and in familiarizing them with the mechanisms of the Bucharest Stock Exchange. Starting this year, the monthly rhythm of Fidelis issuances brings beneficial predictability for investors and strengthens the partnership between the Bucharest Stock Exchange and the Romanian State. Through this collaboration, we offer citizens a transparent, safe and accessible way to capitalize on their savings and, at the same time, contribute to the sustainable financing of the state budget. We congratulate the entire team to whom the success of the Fidelis program is due, the Ministry of Finance, the Brokers Syndicate, the media partner RockFM, and, first of all, the investors who trust the Romanian State and invest in Fidelis government bonds’, said Radu Hanga, Bucharest Stock Exchange President.   ‘Out of the nearly 250,000 investors in the capital market, over 55,000 investors held only Fidelis government bonds in their portfolio at the end of March. In the secondary market, we recorded nearly 240,000 transactions with Fidelis government bonds, worth about 4.8 billion lei, or 9% of the nominal value of the listed issues. We see that Fidelis plays a major role in increasing the number of investors, in line with our objective of ensuring a modern, deep and inclusive capital market. Together with the authorities, we are working to further develop the Bucharest Stock Exchange ecosystem in which retail investors become an increasingly active and financially educated force – a first step towards the financial independence that everyone desires’, stated Remus Vulpescu, 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).   „We continue to see important sums raised through Fidelis issuances from the retail investors, in an updated format and with new maturities and more instruments. We maintain an active potential from instruments issued by the Ministry of Finance, in a context where financing needs are essential and fiscal measures are well perceived by local and international markets. Recurrence and predictability are key elements of funding exercises, and we are working to consolidate these in our client’s interest”, said Vlad Pintilie, Deputy General Manager at BT Capital Partners.   During this offer, which took place between July 4th and 11th, Romanians placed over 17,000 subscription orders, for both RON denominated and EUR denominated government bonds.   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 that 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.  (Photo:https://www.facebook.com/)