Today is the last day on which investors can subscribe to Fidelis government bonds

Today is the last day when investors can subscribe to Fidelis government bonds, in the last offer of this year, launched by the Ministry of Finance. Until yesterday at 16:00, the value of the subscriptions amounted to around 373 million euros, according to the data collected by us from the platforms of some brokers from the Bucharest Stock Exchange (BVB).

The offer, which will end today, is divided into five installments - three in lei, including one dedicated to blood donors, and two installments in euros. Yesterday, at the mentioned time, the tranche in lei due in 2024 and the interest rate of 6.1% had accumulated subscriptions of 199.3 million lei (about 40.1 million euros), and for the tranche due in 2026 and the annual interest rate of 7.25%, the purchase orders launched by investors amounted to 400.2 million lei (80.5 million euros).

For the blood donor tranche, which has an interest rate of 7.1% and is due in December 2024, the subscriptions were 103.9 million lei (about 20.9 million euros). Within this tranche, the minimum subscription threshold is 500 lei.

In the case of the tranche denominated in euros, with a maturity of one year and an interest of 4%, the purchase orders totaled 104.7 million euros, while the subscriptions for the securities with a maturity in 2028 and an annual interest of 5.5%, the subscriptions amounted to 126.4 million euros.

Through the last Fidelis offer, which ended in October, the Finances collected 300 million euros from the population, far below the amount collected following the previous offer, of 483 million euros. This is the fourteenth issue of Fidelis government securities carried out by the Ministry of Finance through the capital market from July 2020 until now.

The offer takes place at a time when inflation is decelerating, for the end of next year the NBR is forecasting an inflation of 4.8% (±2.2%), which will reach 3.3 (±2.4%) in the quarter the third from 2025. In September, the European Central Bank forecast an average inflation of 3.2% next year for the euro area and 2.1% in 2025.

The nominal value of a Fidelis government bond is 100 lei for the issue in lei and 100 euros for the issue in euros, and the minimum subscription threshold is 5,000 lei (except for the blood donor tranche), respectively 1,000 euros.

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 subscription period will end today at 1:00 p.m., according to the offer documents.

Resident and non-resident individuals over the age of 18 can subscribe to Fidelis state securities denominated in lei and euros, through the partner 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, the estimated date for entry into trading being December 21, 2023, according to an announcement by the Ministry of Finance.