Investors can subscribe to Fidelis government bonds, starting today

Investors who want to buy Fidelis government bonds that will be listed on the Bucharest Stock Exchange (BVB) can do so starting today and until July 11, according to recent announcements by the Ministry of Finance.

The offer is structured in 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 7.25%, 7.7% and 7.95% for bonds with maturities of two, four and eight years. In the case of the blood donor tranche, for which people who provide proof of blood donation starting with January 1, 2025 are eligible, the maturity is two years and the interest rate is 8.25%.

The offer is taking place at a time when a medium-term disinflation process is manifesting itself in our country, with the general increase in prices in May being 5.5%, above the April level of 4.9%. On the other hand, analysts' estimates are that the fiscal package presented these days by the Government and which will be implemented to correct the budget deficit will have an inflationary impact.

For the euro tranches in the Fidelis offer that starts today, the interests are 3.4%, 5.5% and 6.3% for the securities with maturities of two, five and seven years, while for the blood donor tranche the maturity is two years and the interest is 4.4%. 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. 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 1,000 euros, according to the announcement of the Ministry of Finance.

Through the latest Fidelis government bond offering held last month, the Ministry of Finance attracted 537 million lei and, respectively, almost 222 million euros, the equivalent of 1.6 billion lei and 330 million euros.

The primary sale offer of Fidelis government bonds is brokered by BT Capital Partners&Banca Transilvania, Banca Comercială Română, BRD-Groupe Societe Generale, Alpha Bank and TradeVille in partnership with Libra Bank.

During the Fidelis government bond subscription process, intermediary banks do not charge commissions. Income obtained, both from interest and capital gains, is non-taxable. The bonds will be listed on the Bucharest Stock Exchange, offering investors the opportunity to sell them before maturity and collect the interest related to the holding period.