Finance launches new Fidelis offer this week

The Ministry of Public Finance is launching a new issue of Fidelis government bonds between August 1 and 8, which will include, for the first time, a tranche with a ten-year maturity in euros, according to an announcement by the MFP.

The offer is divided into eight tranches, four in euros and four in lei - which also include two tranches for blood donors. For the tranches in lei, Finance offers fixed interest rates of 7.2%, 7.65% and 7.9% for bonds with maturities of two, four and eight years. In the case of the blood donor tranche, the maturity is two years and the interest rate is 8.2%.

The offer comes at a time when inflation in our country is well above the central bank's long-term target, while analysts' estimates are that the Government's first fiscal package, which will be implemented to correct the budget deficit, will have an inflationary impact. In June, inflation rose to 5.7%, in annual dynamics, higher than that of May, of 5.4%, thus being more than double the NBR target of 2.5%.

For the euro tranches in the Fidelis offer, the interests are 3.1%, 5.25% and 6.5% for securities with maturities of two, five and ten years, while for the blood donor tranche the maturity is two years and the interest is 4.1%. According to the latest estimates, the European Central Bank indicates an inflation of 2% this year, which will drop to 1.6% in 2026 before returning to 2% in 2027.

The nominal value of a Fidelis title is 100 lei, respectively 100 euros, and the titles will be listed on the Bucharest Stock Exchange (BVB). Donor-investors enjoy a minimum subscription threshold reduced from 5,000 lei to 500 lei, within a maximum ceiling of 100,000 lei, while for euro-denominated titles the minimum subscription threshold is 100 euros for donors, reduced from 1,000 euros, within a maximum ceiling of 100,000 euros, according to the announcement of the Ministry of Finance.

Through the latest Fidelis government bond offering, the Ministry of Finance attracted 1.65 billion lei (681.3 million lei and 192 million euros respectively) from the population.

During the Fidelis government bond subscription process, intermediaries do not charge commissions. The income obtained, both from interest and capital gains, is non-taxable, while the listing on the BVB offers investors the opportunity to sell them before maturity and collect the interest related to the holding period.