Filip & Company assisted the Romanian Ministry of Finance, alongside Linklaters law firm, in a new issuance of bonds in three tranches totalling EUR 4.7 billion.
The first tranche, worth EUR 1.5 billion and maturing on 11 July 2039, has a coupon rate of 6.750%, the second tranche, worth EUR 2 billion and maturing on 16 September 2030, has a coupon rate of 5.750%, while the third tranche, worth USD 1.75 billion and maturing on 16 May 2036, has a coupon rate of 6.625%.
‘We are pleased that the interest in FIDELIS government bonds remains high, with a number of subscriptions that, up to date, has exceeded the total number of operations for the entire year 2024. It is a confirmation of investors’ confidence in this instrument and the increasing attractiveness of the Romanian capital market. This year, we introduced for the first time the possibility for blood donors to access bonds in euros, expanding the social component of the program. This decision comes in continuation of the Ministry of Finance’s efforts to transform the FIDELIS program not only into a savings instrument, but also into a platform for capitalizing civic involvement. Blood donors are examples of social responsibility, and their priority and extended access to government bonds represents a form of public recognition and an incentive to continue this essential gesture for the Romanian medical system. The impact of this measure is twofold: it supports the liquidity of the capital market and, at the same time, encourages a culture of solidarity and active participation in economic and social life. The Ministry of Finance continues to actively support the development of the capital market, through measures that contribute to increasing Romania’s investment attractiveness, such as measures to increase fiscal transparency and predictability, supporting the listing of state-owned companies, constant dialogue to attract institutional and international investors, and expanding access to modern savings and investment instruments’, stated Alexandru Nazare, Minister of Finance.
‘Since the launch of this program in August 2020, Fidelis government bonds have become an important pillar in building the confidence of Romanian investors and in familiarizing them with the mechanisms of the Bucharest Stock Exchange. Starting this year, the monthly rhythm of Fidelis issuances brings beneficial predictability for investors and strengthens the partnership between the Bucharest Stock Exchange and the Romanian State. Through this collaboration, we offer citizens a transparent, safe and accessible way to capitalize on their savings and, at the same time, contribute to the sustainable financing of the state budget. We congratulate the entire team to whom the success of the Fidelis program is due, the Ministry of Finance, the Brokers Syndicate, the media partner RockFM, and, first of all, the investors who trust the Romanian State and invest in Fidelis government bonds’, said Radu Hanga, Bucharest Stock Exchange President.
‘Out of the nearly 250,000 investors in the capital market, over 55,000 investors held only Fidelis government bonds in their portfolio at the end of March. In the secondary market, we recorded nearly 240,000 transactions with Fidelis government bonds, worth about 4.8 billion lei, or 9% of the nominal value of the listed issues. We see that Fidelis plays a major role in increasing the number of investors, in line with our objective of ensuring a modern, deep and inclusive capital market. Together with the authorities, we are working to further develop the Bucharest Stock Exchange ecosystem in which retail investors become an increasingly active and financially educated force – a first step towards the financial independence that everyone desires’, stated Remus Vulpescu, Bucharest Stock Exchange CEO.
“This transaction, one of the largest sovereign issuances by Romania in recent years, reconfirms our country’s solid access to the international capital markets, as well as investor confidence in Romania’s economic outlook and financial stability. The strong demand and significantly improved financing terms demonstrate that Romania is increasingly being perceived as a stable and credible issuer. We are delighted to have supported the Ministry of Finance in this project once again”, declared Monica Stătescu, partner at Filip & Company.
The Filip & Company team that assisted the Ministry of Finance in this project was formed of Alexandru Bîrsan (managing partner), Monica Stătescu (partner), Andreea Bănică (counsel) and Paola Nardelli (associate).