Bursa de Valori Bucuresti : The Ministry of Finance launches on Monday December 5th the 10th IPO for FIDELIS government bonds in RON and EUR with maturities between 1 and 3 years

Bucharest, December 2nd, 2022

PRESS RELEASE

The Ministry of Finance launches on Monday, December 5th, the 10th IPO for FIDELIS government bonds, in RON and EUR, with maturities between 1 and 3 years

• The Government bonds denominated in RON have maturities of 1 year and 3 years and interest of 7.65% p.a. and 8% p.a., and those in EUR have maturities of 1 and 2 years and interest of 2.7% p.a. and 3.7% p.a.
• The initial public offering (IPO) will take place between December 5th and 19th, and the estimated date of the listing of Fidelis bonds is December 23rd.
• Through the previous nine IPOs for Fidelis bonds, between July 2020 to September 2022, the Ministry of Finance attracted RON 13.5bn (EUR 2.7bn) from the individual investors.

The Ministry of Finance (MF) continues the issues of FIDELIS government bonds for retail investors and launches on Bucharest Stock Exchange (BVB) a new selling offer, between December 5th and 19th. This is the 10th such offer carried out on the capital market since July 2020. Through the previous nine offers, the Ministry of Finance attracted from the retail investors over RON 13.5bn (EUR 2.7bn).

‘In the last two years, the Ministry of Finance has constantly offered individual investors alternative instruments to diversify their investments, thus contributing to attracting new investors on the capital market and diversifying the offer of instruments traded on the market managed by Bucharest Stock Exchange. Since the beginning of the program launched in 2020, the Ministry of Finance has offered 9 issues denominated in lei and euros through the intermediary syndicate and attracted a total of 7.84 billion lei and 1.15 billion euros (equivalent to 13.5 billion lei), with maturities between 1 and 5 years. We are very pleased with the investors’ constant interest in FIDELIS issues within the 3 issues denominated in lei and euros through which the Ministry of Finance attracted 4.4 billion lei equivalent this year. The Ministry of Finance was one of the most important partners of the capital market in Romania, contributing to the increase of trades made on the capital market, considering the framework marked by multiple turbulences in the economic, political and social environment encountered in recent years. We will remain a reliable partner in the future, both for the investment environment and for the Bucharest

Stock Exchange in diversifying the offer of attractive financial instruments’, stated Adrian Caciu, Ministry of Finance.

Resident and non-resident individuals over the age of 18 years can subscribe Fidelis government bonds denominated in RON and EUR within the public sale offer carried out on Bucharest Stock Exchange, through BT Capital Partners & Banca Transilvania, Banca Comerciala Romana, BRD – Groupe Societe Generale and Alpha Bank Romania.

‘By continuing this tradition of IPOs for Fidelis bonds, there is a further proof that the stock exchange continues to support the financing of the economy and, at the same time, Romanians are willing to deploy significant amounts of money when they identify an opportunity, regardless of the economic, health or geopolitical context. The last three years have been marked by uncertainties caused by the pandemic, the war in Ukraine, disruptions to global supply chains, but despite these uncertainties, the capital market in Romania has evolved steadily, with more than 120 financing rounds being carried out, with a cumulative value of over 4.7 billion euros. At the same time, the number of investors has risen continuously, from 53,000 in December 2019 to more than 128,000 in September 2022. This dynamic is due both to those who invest directly in shares, but also to those who place their money in Fidelis government bonds’, said Radu Hanga, Bucharest Stock Exchange President.

‘We all want to reach a point in which as many Romanians as possible are investors on the Bucharest Stock Exchange and, at the same time, as many Romanian companies are listed on the stock exchange. For this, we must continue to cooperate with all those involved in the capital market, to implement the right solutions to materialize the development potential of the capital market and the economy. The Ministry of Finance is one of the most important partners of the capital market in Romania and we are proud to prove that the stock exchange is a pillar for accessing financing not only by companies, but also by the Romanian State, and thus the capital is set in motion and brings returns. In the last three years, investors have carried on the secondary market over 39,000 trades with Fidelis securities, with a cumulative value of almost 1.8 billion lei, i.e. approximately 13% of the value attracted through the nine offers. These figures confirm the advantages of listing on the stock exchange, investors having a very fast mechanism for the liquidation of their investment and an active portfolio management’, said Adrian

Tanase, Bucharest Stock Exchange CEO.

The details are available in the next table:

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The allocation of the government bonds subscribed within the offer will be executed on the allocation date (December 19, 2022), and the final number of government bonds offered will be established by the issuer in consultation with the intermediary syndicate. The orders related to the subscriptions allocated to investors based on the subscriptions validated by the members of the syndicate / Eligible Participants will be registered in BVB’s trading system dedicated to public offers (government bonds).

The first trading day is estimated to be December 23, 2022.

The income obtained through the investment in FIDELIS government bonds, both from interest and from capital gains, is non-taxable. Also, the subscriptions can be made through Eligible Participants, which represent any intermediary authorized by Financial Supervisory Authority, which is financial investment company or credit institution registered as a participant in Bucharest Stock Exchange’s trading system that signed the commitment regarding the conditions of the offer, the provisions of the issue prospectus and sent the commitment to the Lead Manager. The intermediary syndicate of the offer includes BT Capital Partners (Lead Manager) & Banca Transilvania (distribution group), BCR, BRD and Alpha Bank Romania.

More details can be found on BVB website.

For additional information, please contact:

Stefan Pompi Musgociu, e-mail:[email protected], phone: 0730.255.030

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