Chisinau will issue municipal bonds for the first time in its history and will do it with the help of Moldova Agroindbank.
This is provided for by a corresponding cooperation agreement signed by the parties on July 15. In particular, the mayor general of Chisinau municipality Ion Ceban signed an agreement with Moldova Agroindbank, which won the tender for the provision of intermediary services for the subscription / placement of the first municipal bond issue in the history of the Moldovan capital. MAIB will provide the necessary support for the development of an alternative financing mechanism for capital projects. This will be the issue of municipal bonds with the maximum volume, which will make it possible to attract investors through the capital market, as well as diversify investment instruments in conditions of maximum transparency. “Today, after signing the contract, we are starting the process of developing a prospectus for intermediary services for the subscription to municipal bonds and their placement, which will become the main document for both investors and the municipality. Only after all the processes are formalized, investors will have increased interest and confidence that the money will be directed to the purchase of public transport for the capital, ”said Ion Ceban. He thanked the team of the Mayor's Office and the experts of the Expert-Group, who, with the financial support of the Dutch Embassy in Moldova, carried out an analysis of the entire area. As noted in Moldova Agroindbank, participation in the issue of municipal bonds is an important event for him. Over 30 years of activity, the bank has established itself as an active supporter of financial innovations, contributing to the development of capital markets in Moldova. MAIB Chairman Giorgi Shagidze noted that since the issue of municipal bonds will be used to purchase modern public transport in Chisinau, MAIB's support for the project is in line with the bank's goal of promoting the Smart City concept. Municipal bonds are securities issued by cities or other local governments. Local governments can issue municipal bonds for capital investments or to refinance previously issued long-term debt. MAIB is developing partnerships with the Capital Municipality by financing important projects such as the development and modernization of transport infrastructure. Also MAIB and Mastercard are participating in the first stage of the pilot project for electronic fare payment in public transport in Chisinau. MAIB is the largest bank in Moldova, accounting for about 30% of the country's banking assets and about 35% of loans. // 15.07.2021 — InfoMarket
