MFP attracts 7,951 private investors in first months after bond sales start

The Ministry of Public Finance (MFP) has attracted 7,951 private investors in the first months since the start of bond sales, six times more than during the entire 2015 subscriptions period, and the total value is RON 280 million. The MFP has also announced plans to  supplement the state bonds emission for this year according to the level of demand.

According to a statement by the MFP, last week, the average level of subscription was RON 55.3 million and there were 1,590 investors.“The Ministry of Public Finance has managed in the first five days since the start of state bond sales to attract 7,951 investors, six times more than during the entire 2015 subscription period. The total value of subscriptions is nearing RON 280, almost three times more than the amount announced initially. Up until now, the minimum amount subscribed was RON 100, the value of a state bond, and the maximum one RON 100,000, the statement said.

The Ministry of Public Finance also announced plans to supplement the state bonds emission for this year according to the level of demand.

The ministry reminded the public that the subscription is running July 11-29, and the interest is 2.15 percent per year. The bonds mature in 2018 and have a nominal value of RON 100. An individual can purchase a maximum of 1,000 titles, adding up to a maximum amount of RON 100,000.State bonds can be purchased, without costs, from the four banks participating in the program: BCR, BRD, Raiffeisen Bank and Banca Transilvania.

Revenues obtained from state bonds are not subject to tax.

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The state bonds will be admitted and later traded on the Bucharest Stock Exchange (BVB). The price of the bonds can vary on the stock exchange, depending on the market conditions. Moreover, the MFP announced that bond holders can participate in a lottery after bonds reach maturity. The 100 selected winners will receive RON 1,000 each.

The MFP issued state bonds for the population in June 2015, for the first time in ten years.

Georgeta Gheorghe