The Ministry of Finance Raised 2.3 Billion Lei Through the Fidelis Offering, Less Than the Previous Offering

The Ministry of Finance has raised 2.25 billion lei from investors through the latest issuance of Fidelis government bonds, below the record set by the first offering of this year, which amounted to 4.3 billion lei, according to our calculations based on data from a brokerage firm.

The offering was structured into six tranches-four in lei and two in euros-about 60% of the subscriptions being made in the national currency. For the one-year maturity tranche with an annual interest rate of 6.8%, investors placed purchase orders amounting to 760.2 million lei, while the three-year maturity tranche with an interest rate of 7.5% attracted subscriptions of 209.4 million lei. The five-year maturity tranche with an annual interest rate of 7.8% raised 113.3 million lei.

For the blood donor tranche, with a one-year maturity and an interest rate of 7.8%, the subscription value reached 327.5 million lei.

The euro-denominated tranches have maturities of two and seven years, with annual interest rates of 3.75% and 6%, respectively. The purchase orders totaled 82.6 million euros (411.7 million lei) for the two-year tranche and 85.5 million euros (425.8 million lei) for the seven-year tranche.

The minimum subscription was 1,000 euros for the euro tranches and 5,000 lei for the lei tranches, with a lower threshold of 500 lei for blood donors.

The offering took place during a period of high but slowing inflation. In February, inflation was 5%, but the National Bank of Romania (BNR) forecasts a 3.8% inflation rate for the last quarter, which is expected to drop to 3.1% by the fourth quarter of 2026. In the eurozone, the European Central Bank estimates inflation will hover around 2.3% this year, decreasing to 1.9% next year.

Income earned from both interest and capital gains related to Fidelis bonds is tax-exempt. The offering ran from March 7 to March 14, with the bonds set to be listed on the Bucharest Stock Exchange (BVB) on March 20.

According to the Ministry of Finance, other benefits offered by Fidelis bonds include: the ability to sell the bonds before maturity while receiving interest for the holding period; special tranches for blood donors with an interest rate one percentage point higher than the regular rate; and the diversification of maturities for both lei and euro-denominated bonds.

The Ministry of Finance has announced that Fidelis will have a monthly frequency this year, with the next government bond issuance scheduled for April.