Finances raised 300 million euros through the latest Fidelis offer, below the amount from the previous issue

The Ministry of Finance raised only 299 million euros through the latest issue of Fidelis government bonds, well below the amount collected from the previous offer, of 483 million euros, which ended in July, according to data compiled by us from brokers' platforms.

The pullback occurs when the interest rates offered were below those of the previous issue. Additionally, Finance's consistency in releasing Fidelis offers brings some habit among investors, which thins volumes.

The offer, which ended this week, was divided into five installments, two in euros and three in lei - which included one intended for blood donors. The euro tranche with the maturity of one year and the annual interest of 3.9%, accumulated subscriptions of 97.4 million euros, while for the tranche with the maturity of five years and the interest of 5.3%, the subscriptions amounting to 93.8 million euros.

For the installments in lei, the subscriptions were 46.9 million euros (233.3 million lei) in the case of the three-year maturity and 7.1% interest, respectively 37.6 million euros (187.3 million lei ) for the tranche with a maturity of one year and an interest rate of 6.25%.

The fifth tranche, dedicated to blood donors, accumulated subscriptions of 22.9 million euros (114.1 million lei). The interest offered in this case is 7.25%, and the maturity of the securities is one year. Within this tranche, people who donated blood could subscribe starting from January 1, 2023, the minimum subscription threshold being 500 lei.

This was the thirteenth issue of Fidelis government bonds carried out by the Ministry of Finance through the capital market from July 2020 until now. The offer took place in a period of high inflation, for the end of this year the BNR is forecasting an inflation of 7.5% (±1.0%), which will reach 4.4% in the fourth quarter of 2024 and on 3 .8% in the middle of the following year.

In the first Fidelis offer of 2023, the Ministry of Finance collected over 600 million euros from the population. The nominal value of a Fidelis government bond is 100 lei for the issue in lei and 100 euros for the issue in euros, and the minimum subscription threshold is 5,000 lei (except for the blood donor tranche), respectively 1,000 euros. In the process of underwriting Fidelis government bonds, no commissions were charged by the intermediary banks, and the income obtained, both from interest and from capital gains, are non-taxable.

The titles will be listed on the Bucharest Stock Exchange at the beginning of next week.