The government bonds issue for the population has been oversubscribed seven times, with the Ministry of Public Finance having drawn more than 735 million lei, given the original value of the issue was 100 million lei, Minister of Public Finance Anca Dragu announced on Friday.
As to the number of investors, it was 20,185, by 16 times more compared to the last year.
Most investors come from urban areas, with almost 20,000 subscriptions, but also the share of those from rural areas is increasing, standing at 13pct in this year’s issue.
The Ministry of Public Finance issued government bonds for the population in June 2015, for the first time after 10 years of absence on this market. The worth of last year’s issue was also 100 million lei, but the nominal value was 1,000 lei, later on considered too high. The interest rate was set also at 2.15pct, but following a mechanism that seemed complicated for many citizens. As a result, the issue was subscribed only in a proportion of 65pct, and the authorities decided to alter the characteristics of the new issue.
Bucharest Stock’s Anghel: State bonds for population could be traded with Friday at 100.57 lei/title
The state bonds for the population of the Fidelis Centenar issue will be traded on the Bucharest Stock Exchange (BVB) starting with 5 August 2016, and the titles’ owners will be able to trade them at the prices rated transparently on the BVB, in the first day the price reaching 100.57 lei/title, the BVB president Lucian Anghel told Agerpres.
“The demand proves that it is a very rewarding placement and an intelligent decision of those who have invested and I’m certain that the ones who didn’t will pursue carefully at, at the next issue, they could get bolder after this success enjoyed by the second state bond issue for the population,” Lucian Anghel explained.
The Bucharest stocks is to release a guide for the investors in state bonds.
The Fidelis Centenar state bonds are worth 100-lei nominal value at a yearly payable 2.15pct annual interest, and two-year maturity.