Romania raises RON 1.2 billion from households with fourth Fidelis bond issue

Romania’s Treasury sold RON 1.2 billion (EUR 240 million) worth of bonds denominated in local currency and in euros under the fourth issue of the Fidelis scheme aimed at households this year. More than half of the money was raised with the 1-year RON-denominated bonds with a 6.75% coupon (RON 430 million) and the 7-year EUR-denominated bonds with a 6.25% coupon (EUR 45 million or RON 230 million).

The size of this fourth issue is thus comparable to the previous one (RON 1.3 billion) but well below the RON 2.66 billion average sum raised under the first three issues that resulted in a total of RON 8 billion in the first four months of the year.

Romania’s Treasury launched in May new issues of Government bonds under the Tezaur and Fidelis schemes, paying yields of 6.75% (1-year) to 7.8% (5-year) for the local currency debt and up to 6.25% (7-year) for euros.

After the Treasury raised RON 21.4 billion (EUR 4 billion) under the two schemes in the first four months of the year, the households’ demand for Government debt in general and in particular for those denominated in local currency has diminished amid the volatile market and outlook of local currency depreciation.

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