Subscriptions in the Fidelis offer exceeded 100 million euros

Subscriptions in the Fidelis government bond offering have exceeded the 100 million euro threshold, four days after the start of the market operation, according to our calculations based on data from a brokerage house's platform.

The offering, which began earlier this week and will end on December 18, is structured in six tranches, four in lei and two in euros. As of yesterday around 2:00 p.m., for the lei tranche with a one-year maturity and an interest rate of 6.45%, subscriptions amounted to about 138 million lei (27.6 million euros), while for those with an interest rate of 7.6% and a five-year maturity, the value of purchase orders amounted to 70.5 million lei (14.2 million euros).

The other two lei tranches, with maturities of one year and three years, are dedicated to blood donors. The one with maturity in 2025 and interest of 7.45%, had accumulated subscriptions of 32.6 million lei (6.6 million euros), while for the tranche with maturity in 2027 and annual interest of 7.9%, the value of purchase orders launched by investors was 23.4 million lei (4.7 million euros). Within these tranches, people who have donated blood starting with July 1, 2024 and/or who donate during the period of the Fidelis government securities sale offer can subscribe.

The euro tranches have maturities of two and seven years, with annual interest of 3.75% and 5.75%, subscriptions amounting to 23.5 million euros and 30 million euros, respectively, by yesterday at 14:00.

The minimum subscription is 1,000 euros for installments in euros and 5,000 lei for those in lei, respectively 500 lei for blood donors.

The offer comes at a time of high but slowing inflation. In November, inflation was 5.1%, up from 4.67% in October, but the NBR forecasts 3.5% inflation in the last quarter of next year, falling to 3.3% in the third quarter of 2026. In the case of the euro area, the European Central Bank indicates inflation of 2.2% next year, falling to 19% in 1.9% in 2026.

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

The bonds will be listed on the Bucharest Stock Exchange on December 27.

So far this year, Finance has raised almost 14 billion lei from the population through five issues of Fidelis government bonds, on top of the 9.4 billion lei in 2023, according to a press release from the Ministry.