Romanian retail investors’ interest shifts to long-term, euro-denominated state debt

Romanians purchased RON 1.49 billion (nearly EUR 300 million) under the last Fidelis issue this year, organised by the Treasury in December, with over two-thirds of the money being placed in euro-denominated debt and more than one-third of the total being placed in long-term 10-year euro-denominated debt with a 6.2% coupon attached, according to data published by the Ministry of Finance.

The average placement in 10-year bonds exceeded EUR 27,800 per order, with investors allowed to place multiple orders. The value of an average order for the most popular local currency-denominated tranche, with a 6-year maturity and 7.5% coupon, neared RON 150,000 or EUR 30,000.

The value of the state bonds denominated in local currency issued to retail investors in December was RON 465 million, less than half of the equivalent of RON 1,025 million placed by the individual investors in euro-denominated debt. The value of 10-year euro-denominated bonds placed by the state in December reached EUR 115 million, or the equivalent of RON 587 million.

Over the entire 11 Fidelis issues during this year, the Ministry of Finance raised RON 21 billion (EUR 4 billion).

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