Many Fidelis government securities listed on the capital market in recent years are sold below the subscription price (100 lei or EUR). This means that those who buy them at lower prices will get a profit on the difference in value at maturity, in addition to interest.

The new NBR inflation forecast is downward: 7% at the end of 2023, 6.2% at the end of the 1st quarter of 2024, 5.4% in the 2nd quarter of 2024, 4.7% in the 3rd quarter of 2024 and 4.2% in 4 quarters of 2024.

So some of Fidelis’ government securities may wink at investors.

I took every issue that didn’t reach maturity to look at the prices on the exchange. Attention, they can change depending on supply and demand.

* Interests are annual percentages

Lions:

R2408A (4.5%) – 96 lei – repayment on August 12, 2024.

R2312A (4%) – 97.56 lei – repayment on December 4, 2023.

R2403A (3.1%) – 95.5 lei – repayment on March 24, 2024.

R2307A (3.25%) – 98.7 lei – maturity July 15, 2023.

R2410A (3.75%) – 95.24 lei – maturity date is October 6, 2024.

R2412A (4.6%) – 95 lei – repayment on December 15, 2024.

R2304A (4.7%) – 99.87 lei – maturity date is April 6, 2023.

R2504A (5.5%) – 97 lei – repayment on April 6, 2025.

R2306A (7.2%) – 100.64 lei – maturity on June 24, 2023.

R2506A (7.8%) – 101.2 lei – maturity on June 24, 2025.

R2509A (8%) – 101.4 lei – repayment on September 21, 2025.

R2312B (7.65%) – 100.8 lei – maturity on December 22, 2023.

R2512A (8%) – 102.2 lei – repayment on December 22, 2025.

Euro:

R2508AE (2%) – EUR 94.59 – due on August 12, 2025.

R2512AE (1.85%) – €93.49 – due on December 4, 2025.

R2603AE (1.55%) – €93 – maturity date 24 March 2026.

R2307AE (1%) – €99.85 – due on July 15, 2023.

R2610AE (1.6%) – EUR 92 – maturity October 6, 2026

R2612AE (1.8%) – EUR 92.5 – maturity on December 15, 2026.

R2304AE (1.2%) – EUR 100.19 – due April 6, 2023

R2404AE (1.6%) – EUR 99.9 – repayment on April 6, 2024.

R2306AE (1.4%) – €99.99 – due on June 24, 2023.

R2406AE (2.3%) – EUR 99 – maturity June 24, 2024

R2309AE (1.85%) – EUR 99.9 – maturity September 21, 2023

R2409AE (2.65%) – EUR 98.9 – maturity September 21, 2024.

R2312AE (2.7%) – €100.99 – due on December 22, 2023

R2412AE (3.7%) – €100.99 – due on December 22, 2024.

The advantage of Fidelis compared to Tezaur is that if you need money faster, you can sell the securities immediately, and if you have collected interest, you keep it.

On the other hand, in Tezaur, another offers a state through which the titles are sold through the Treasury, the post office and the SPV, everything is not quite right. You can redeem early, but you will lose interest. In addition, Tezaur does not have an offer in European currency.

At the moment, the government uses the February Treasury with interest rates of 7.2-8% per annum, and the subscription ends on February 23rd for those using Romanian Post and SPV, and on February 24th for the Treasury version.

If the NBR’s new inflation forecast comes true, investors in such securities will beat inflation.

Government securities are tax-free, and if you earn more than 6 minimum wages, you do not pay CASS, unlike bank deposits.

* This text is not an investment recommendation, but represents a market offer

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