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

• Interest rates between 5.8% and 7% for securities in lei, respectively 4% and 5% for those in euros

• Subscriptions end on August 20

Investors show a higher appetite for tranches in the euro currency, at the last offer of Fidelis government bonds intended for the population, as it appears from the subscriptions made until yesterday, at 16:30, 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 87.6 million euros (436.5 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 28.8 million euros (143.3 million lei).

For the installments in lei, the subscriptions were 179.8 million lei (36.1 million euros) in the case of the one with a maturity of one year and 5.8% interest, respectively 155.6 million lei (31.2 million euros) for the tranche with a three-year maturity and 7% interest.

The fifth tranche, dedicated to blood donors, had accumulated subscriptions of 44.7 million lei (8.98 million euros). The interest offered in this case is 6.8%, and the maturity of the securities is one year. Within this tranche, people who have donated blood starting from March 1, 2024 can subscribe.

Thus, about 60% of the total subscriptions of about 193 million euros made until yesterday, at 4:30 p.m., had been made in European currency.

The offer is taking place in a period of disinflation. For the last quarter of this year, the BNR forecasts an inflation of 4%, which will drop to 3.4% at the end of next year. The European Central Bank indicates inflation of 2.4% this year, which will decelerate 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 period of the offer is August 8-20, this being the fourth Fidelis show this year.

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

The primary offer for sale of Fidelis government securities is mediated by the banks BT Capital Partners&Banca Transilvania, Banca Comercială Română, BRD - Groupe Societe Generale and Alpha Bank. The securities will be listed on the Bucharest Stock Exchange.