Subscriptions in the Fidelis offering exceeded 250 million euros

Subscriptions in the Fidelis government securities offering exceeded the 250 million euro threshold three 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 at the end of last week and will close on February 14, is divided into six tranches, four in lei and two in euros. Until yesterday around 15:00, for the lei tranche with a maturity of one year and an interest rate of 6.95%, subscriptions were about 370 million lei (74 million euros), while in the case of those with an interest rate of 7.65% and a maturity of three years, the value of purchase orders amounted to 97 million lei (19.5 million euros). The securities with a maturity of five years and an interest rate of 7.95% had accumulated sales orders worth 120 million lei (24 million euros).

For the blood donor tranche with a maturity of one year and an interest rate of 7.95%, the value of subscriptions amounted to 137 million lei (27.6 million lei). Within this tranche, people who have donated blood starting with September 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 rates of 4% and 6.25%, with subscriptions amounting to 57.8 million euros and 74.4 million euros, respectively, by 3:00 p.m. Yesterday.

The minimum subscription is 1,000 euros for the euro tranches and 5,000 lei for those in lei, respectively 500 lei in the case of blood donors. The offer is taking place in a period of high, but decelerating, inflation. In December last year, inflation was 5.1%, similar to the previous month, but the NBR forecasts a 3.5% inflation for the last quarter, which will drop to 3.3% in the third quarter of 2026. In the case of the euro area, the European Central Bank estimates that inflation will oscillate around the 2% target starting with the second quarter of this year.

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 February 20. Last year, the Ministry of Finance launched six issues of Fidelis government bonds, through which it collected 16.4 billion lei from the population. This year, the ministry will launch Fidelis offers every month.

According to the Ministry of Finance, the benefits offered by Fidelis securities include: the possibility of selling the securities before maturity and receiving the interest related to the holding period; special tranches for blood donors, with one percentage point above the regular interest rate; diversification of maturities for lei and euro securities. The primary sale offer of government securities is brokered by a syndicate formed by BT Capital Partners (Lead Manager and Intermediary), Banca Transilvania and Libra Internet Bank (Distribution Group), Alpha Bank Romania, Banca Comercială Română, BRD - Groupe Societe Generale and Tradeville (Intermediaries).