RO Govt. targets households’ savings with new bond issues

Romania's Government launched, on November 9, new bond issues in local currency and euro for individual investors under the Fidelis 2020-2021 program, Economica.net reported.

The new bonds can be purchased until November 27 and will later be listed on the Bucharest Stock Exchange, where individual investors can sell them to investment and pension funds.

There is no limit on how much an individual investor can invest in the Government's bonds, while the minimum amount is RON 5,000 and EUR 1,000, respectively.

The maturities for the two issues denominated in local currency are one and three years.

The bonds denominated in foreign currency have a maturity of 5 years.

The coupons attached to the local currency bonds are placed on a yield curve some 25bp below that implied by the similar issues launched in July-August.

Thus, the Government is now paying 3.5% for one-year maturity and 4% for three years maturity - while it paid 4% for two years and 4.5% for four years in July-August.

For the five-year bonds denominated in euros, the coupon is 1.85% - directly comparable with the 2% in July-August.

In July-August, the Government raised some RON 1.22 billion (EUR 250 million) and EUR 168 mln through the Fidelis program.

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