The new issues of Fidelis government bonds offered for subscription by the Romanian Ministry of Finance in September keep interest rates unchanged from the previous month, at up to 7.5% per annum for issues in lei and up to 6.3% for those in euros - both yields applying to the 10-year maturities.

Investors can subscribe at an interest rate of 6.3% for the two-year lei maturity, 6.9% for the four-year maturity and 7.5% for the 10-year maturity. For the euro-denominated component, interest rates remain at 4% for three years and 6.3% for ten years. Neither level has changed compared with August, although the two issues are separated by a month.

Fidelis bonds, traded on the Bucharest Stock Exchange, are the main channel through which the state borrows directly from individuals. The income obtained from holding them is non-taxable, which keeps them competitive with bank deposits. Tezaur bonds, which are not traded on the Bucharest Stock Exchange, are also sold through a broader range of distribution channels.

The special tranches for blood donors are also maintained, with a 7.3% yield for the two-year lei maturity and 5% for the three-year euro maturity, also unchanged from August.

Subscriptions can be made by resident and non-resident individuals aged 18 or over through BT Capital Partners, Salt Bank and Banca Transilvania, Banca Comercială Română, BRD - Groupe Société Générale, UniCredit Bank and TradeVille, in partnership with Libra Bank.

The securities are subsequently listed on the Bucharest Stock Exchange, allowing holders to sell them before maturity, at the market price and with interest corresponding to the holding period.

iulian@romania-insider.com

(Photo source: Facebook/Bursa de Valori Bucuresti)