A new municipal bond issue of RON 555 million issued by Bucharest City starts trading today on the Bucharest Stock Exchange (BVB) Regulated Market.
The bond offering of the Bucharest City Hall has been oversubscribed by almost 50 percent, Gabriela Firea, General Mayor of Bucharest, said on Thursday, attending the official opening event of the trading session.
”As a first, the Bucharest Municipality has received a premium of nearly RON 3 million, which is to be appreciated. The investors were interested – commercial banks, investment, pension funds, insurers,” Firea said.
According to an announcement by the operator of the capital market, the bonds mature on April 23, 2028 (maturity at 10 years) and it is about 55,500 bonds with a nominal value of RON 10,000. The coupon rate is 5.6 percent.
Capital’s General Mayor notes that Bucharest is the largest economic growth pole in Romania, contributing almost 25 percent to the GDP of the country.
”For the first time since taking office, I have talked about the metropolitan area and the need for a law of the capital and the metropolis, a document that is under work and will bring a better life for all the inhabitants,” said the mayor of Bucharest.