Romania’s households allocate third of Fidelis state bond placements to 10-year EUR issue in March
The volume of state bonds sold by the Romanian Treasury in March was, to a significant extent, supported by the households’ preference for long-term bonds denominated in foreign currency. The 10-year issue denominated in euros, with a 6% coupon, attracted EUR 92 million, the equivalent of RON 467 million, or more than a third of the total subscriptions.
In total, the March edition of the Fidelis government securities program attracted subscriptions of over RON 1.17 billion. Investors placed a total of 14,691 subscription orders, with a total value of investments of RON 533.96 million and EUR 126.13 million.
The special tranche dedicated to blood donors, with a maturity of 2 years and an interest rate of 6.90%, attracted RON 99.71 million through a number of 2,258 subscription orders, investors benefiting from the minimum subscription threshold being reduced to RON 500.
Regarding the standard issues in lei, investors had three maturities available. For the 2-year maturity and an interest rate of 5.90%, subscriptions worth RON 236.56 million were recorded, made through 2,788 orders. The 4-year maturity, with a 6.60% interest rate, totaled RON 52.09 million, being accessed through 730 orders, while the securities with a 6-year maturity and a 7.10% interest rate attracted RON 145.59 million through 2,257 orders.
For the bonds denominated in euros, the offer included maturities of 3, 5, and 10 years. The 3-year maturity with a 3.50% interest rate recorded subscriptions of EUR 19.33 million, equivalent to approximately RON 98.82 million, through 1,135 orders. The 5-year maturity, with a 4.50% interest rate, accumulated EUR 14.99 million, equivalent to approximately RON 76.60 million, through 942 orders.
The star of this edition, however, was the 10-year maturity, with a 6% interest rate, which recorded the highest number of subscriptions among all tranches of the issue. It attracted EUR 91.80 million, equivalent to approximately RON 469.14 million, through 4,581 orders.
The decreasing coupons paid by the Treasury for local currency bonds and the macroeconomic uncertainty pushed households to avoid the exchange rate and inflation risks. In February, investors placed orders worth only RON 198.26 million.
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