On September 22, the Costesti Mayor's Office in Ialoveni District announced a public bond placement worth 4.5 million lei, diversifying its funding sources by tapping the capital market
According to the National Commission for Financial Markets, the proceeds will be used to complete the construction of a treatment plant and commission the local sewerage system. Costesti is the sixth locality in Moldova to take advantage of this financial instrument. Present at the project presentation, Dumitru Budianschi, Chairman of the National Commission for Financial Market, thanked all partners involved in the project, noting that local government financing through municipal bonds is gaining popularity. Furthermore, public bond issues are becoming increasingly complex and better adapted to the needs of localities. The Chairman of the National Commission for Financial Market congratulated the Costesti local authorities on the bond issue, expressing confidence that they will continue other development projects. "I am confident that you are a role model for communities located near Chisinau. Thanks to such tools, communities can accelerate their modernization, transforming them into comfortable living environments for citizens and attractive to local businesses. The National Commission for Financial Market will continue to support local authorities in harnessing the potential of the capital market," emphasized Dumitru Budianschi. According to the bond issue prospectus approved by the NCFM, 45,000 bonds with a par value of 100 lei each, totaling 4.5 million lei, will be placed on the primary market. The bonds are divided into three classes (I, II, and III) of 1.5 million lei each, to finance the completion of the treatment plant and the commissioning of the community's sewerage system. The bonds are issued on differentiated terms: Class I and II bonds have maturities of 2 and 3 years, respectively, with a fixed interest rate of 7.5% and 7.7%, respectively, paid semi-annually, while Class III bonds have a maturity of 4 years, with a floating interest rate paid and adjusted semi-annually depending on the effective weighted average interest rate on government securities with a maturity of 182 days for a period of 6 months preceding the coupon payment date, plus a fixed margin of 0.5%. The initial placement period for the bonds will be 14 calendar days from the offer start date. The bonds will be offered to all interested individuals and legal entities subject to subscription on a "lot" basis (a lot consists of a package of three bonds - one bond of each class (I, II and III)). The public offering prospectus is available at the Costesti Mayor's office, the office of the intermediary, maib, and on their websites. This initiative is part of a program to support local governments in issuing municipal bonds, implemented by the Independent Analytical Center Expert-Grup with the support of the Embassy of the Netherlands in Moldova. // September 22, 2025 – InfoMarket.
