The Romanian Ministry of Finance’s winter issuance of Fidelis government bonds attracted subscriptions worth RON 130 million on its first day, split between RON 57 million in the leu-denominated segment and EUR 14.5 million in the euro-denominated segment. The program, which runs from December 9 to December 18, 2024, offers a variety of maturities and higher interest rates aimed at retail investors.

Radu Cojoc, a broker at Goldring, highlighted the strong interest in euro-denominated bonds, particularly the newly introduced seven-year maturity offering 5.75% per annum. 

“This tranche alone attracted over EUR 5 million on the first day. The higher interest rates of the latest issues, combined with political uncertainties, have driven volatility and increased trading volumes for already tradable securities, adjusting the yields offered,” Cojoc stated.

On December 9, subscriptions in the leu segment included RON 5.4 million for one-year bonds at 7.45% per annum, reserved for blood donors, and another RON 5.4 million for three-year bonds at 7.9% per annum, also reserved for donors. Among tranches open to the general public, RON 27 million was subscribed for one-year bonds at 6.45% per annum, and RON 19.3 million for five-year bonds at 7.6% per annum.

The strong debut underscores the competitive yields offered by Fidelis bonds, which have gained traction among retail investors in a volatile economic and political environment. With eight days remaining in the subscription period, the ministry anticipates sustained interest, particularly for euro-denominated bonds.

(Photo: Ruletkka/ Dreamstime)

iulian@romania-insider.com