BVB – Bucharest Stock Exchange, Photo: Hotnews
The primary offer for sale of Fidelis government bonds took place between October 10 and 17, through the systems of the Bucharest Stock Exchange (BVB).
In short:
- The Ministry of Finance (MF) attracted 946.8 million lei and 246.1 million euros through seven issues of government securities for the population (FIDELIS), in the ninth public offering held this year on the capital market.
- Fidelis government bonds issued in October start trading on Thursday, October 23, at the Bucharest Stock Exchange.
- The next Fidelis government bond offering is expected to start in the first decade of November.
- Through the 29 offers carried out since August 2020, the Ministry of Finance attracted 59.2 billion lei (11.9 billion euros) from the population, an amount of which more than 30%, i.e. 18.3 billion lei (3.6 billion euros), represents the value of the issuance of government securities carried out this year alone.
The operation was mediated by the syndicate formed by BT Capital Partners (Lead Manager), Banca Comerciala Romana, BRD – Groupe Societe Generale, TradeVille and UniCredit Bank (Intermediary Syndicate) and Banca Transilvania, Libra Internet Bank (Distribution Group).
Within this offer, Romanians placed over 21,000 subscription orders, both for government securities denominated in lei and for those in euros.
The characteristics of government securities are presented in the following table:
Income earned, both from interest and from capital gains, is not taxable.
Resident and non-resident natural persons over the age of 18 could invest in the issue of Fidelis government securities up to and including the closing date of the offer.
Where can I find the titles I bought in the offer?
If they were subscribed through a bank or brokerage company, without signing a financial investment services contract, the government securities are registered in the records of the Central Depository in the name of the holder. If the government securities were purchased on the basis of a financial investment services contract, through a bank or brokerage company authorized to trade at the Bucharest Stock Exchange, the government securities are in the holder's trading account.
What do I do with government securities?
They can be held until maturity or the holders can sell them or buy others in any trading session on the BVB, through one of the intermediaries authorized (bank or brokerage firm) to trade on the BVB.
If holders want to keep government bonds, they have two options:
- They will receive the annual interest, and at maturity the principal will be returned to them in a bank account sent to the Central Depository, if the subscription was made through a bank or brokerage company, without signing a contract for the provision of financial investment services.
- I can open a trading account at a bank or brokerage company, by signing a financial investment services contract, and I can transfer government securities from the Central Depository to this trading account. In this case, the holders will have the government securities in the investment account where they will receive the annual coupon, and at maturity the principal will be returned to them.
How can I sell or buy more government securities after the offer has ended?
BSE transactions take place between buyers and sellers through the trading platform. In order to buy or sell, investors must have a trading account with a bank or brokerage firm. The list of intermediaries authorized to trade on the BSE is available HERE.
Where can I see the current stock price?
The price can be checked at any time on the website of the Bucharest Stock Exchange, www.bvb.ro, by entering the symbols below in the [ Căutare ] from the main page:
R2710B – for state securities for donors, in lei and with a maturity of 2 years
R2710A – for government securities in lei with a maturity of 2 years
R2910C – for government securities in lei with a maturity of 4 years
R3110A – for government securities in lei with a maturity of 6 years
R2810CE – for government securities in euros with a maturity of 3 years
R3010AE – for government securities in euros with a maturity of 5 years
R3510AE – for government securities in euros with a maturity of 10 years.
