Greater appetite for installments in euros, with the latest Fidelis offer

Investors show a higher appetite for tranches in the euro currency, at the last offer of Fidelis government securities intended for the population, as it appears from the subscriptions made until yesterday, at 13:00, according to the data we collected from the platform of a brokerage house.

For the tranche with a maturity of one year and an interest rate of 4%, subscriptions amounted to 62.2 million euros (329.2 million lei), while in the case of those with an interest rate of 5% and a maturity of five years, the value of the orders of purchase amounts to almost 41.9 million euros (208.2 million lei).

For the tranches in lei, the subscriptions were 142.5 million lei in the case of the one with a maturity of one year and an interest of 6%, respectively 120.7 million lei for the tranche with a maturity of three years and an interest of 6.85%.

The fifth tranche, dedicated to blood donors, had accumulated subscriptions of 94.3 million lei. The interest offered in this case is 7%, and the maturity of the securities is one year. Within this tranche, people who have donated blood starting from September 1, 2023 and/or who donate during the Fidelis government securities sale period can subscribe.

Thus, about 60% of the total subscriptions of about 895 million lei made until yesterday at 1:00 p.m. had been made in European currency.

The offer takes place in a period of high inflation, but which shows signs of deceleration. For the second quarter of this year, the BNR forecasts an inflation of 5.7%, which will drop to 4.7% in the fourth quarter, respectively 3.5% in the last part of next year. In the case of the euro zone, the European Central Bank indicates an inflation of 2.3% in this, which will drop to 2% in 2025 and to 1.9% in 2026.

The minimum subscription is 5,000 lei for issues in the national currency and 1,000 euros for those in the European currency. For the installment of blood donors, the minimum subscription is 500 lei. The last day on which those wishing to subscribe to government bonds is Wednesday, April 17.

In the process of underwriting Fidelis government securities, no commissions are charged by intermediary banks, and the income obtained, both from interest and from capital gains, are non-taxable.

The securities will be listed on the Bucharest Stock Exchange on April 23.

The primary offer for sale of Fidelis government securities is brokered 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).