Romania's Ministry of Finance raised RON 658.2 million (EUR 132 million) from retail investors in the latest Fidelis government bond issue, marking the programme's weakest offering since its launch in August 2020 and extending a recent decline in investor demand.

The subscription period ran from July 3 to July 10. The amount raised was down almost 30% from the RON 940 million collected in June, which had already been one of the programme's weakest editions, Ziarul Financiar reported.

The latest issue consisted of four leu-denominated and three euro-denominated tranches. Of the total amount raised, RON 202.6 million came from leu-denominated bonds, while investors subscribed EUR 87.6 million (equivalent to around RON 455.6 million) in euro-denominated securities.

The weaker subscription volumes came after the Ministry of Finance lowered yields on leu-denominated securities by 5 basis points compared with the June issue, anticipating a broader decline in domestic borrowing costs. Euro-denominated coupons were also reduced for the three-year and five-year maturities, although the 10-year euro bond coupon was increased to 6.2% from 5.8% in June.

The latest results suggest retail investors have become more selective, favouring longer-dated euro-denominated securities amid continued political uncertainty and exchange rate risks. Nearly 70% of the funds raised in the July issue came through euro-denominated bonds despite their lower overall number of tranches.

iulian@romania-insider.com

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