Municipal bonds to be issued for the first time in the Moldovan capital market, the proceeds of which will be directed to investment projects.
According to the National Commission for the Financial Market (NCFM), the administrations of the towns of Singera and Ceadir-Lunga signed a mediation agreement with Victoriabank for the implementation of the first public offers of bonds in Moldova. The event took place within the framework of the project “Local government bonds –an instrument to foster local autonomy”, implemented by the Expert-Grup Independent Analytical Center with the financial support of the Dutch Embassy in Chisinau. Within the framework of the project, 3 mayoralties (Chisinau, Singera and Ceadir-Lunga) receive advice and training in the process of the first bond issues by local public authorities in our country. So far, the beneficiary mayoralties have submitted investment projects for financing from the funds received from the bond issue, and the city halls of Singera and Ceadir-Lunga have already completed the stage of selecting a financial intermediary through an open tender and contracting. Chisinau municipality, in turn, is at the stage of holding a competition to select a financial intermediary. The mayor of Sînghera, Valeriu Popa, said that from the proceeds of the first issue of bonds worth 5 million lei, the local authorities plan to finance the construction of a water pipeline for 300 households. In turn, the mayor of Ceadir-Lunga Anatolie Topal stressed that this financing instrument will be used for the rehabilitation of local roads, as well as for the development of infrastructure, which will increase the interest of foreign investors. Nina Dosca, Deputy Chairperson of the NCFM, noted that for Moldova, municipal bonds are a modern financial instrument for attracting investments in settlements, which implies many benefits with low costs. Closer cooperation between local authorities and the capital market can also lead to an increase in the quality and efficiency of financed projects, as well as to stimulate long-term financial planning, she said. Nina Dosca said that Moldova should follow this trend of using alternative sources of finance to provide local and international investors with an improved environment for the capital market to function. “NCFM, in agreement with the competent authorities, has developed and promoted legislation related to the process of placement and circulation of municipal bonds, and, according to Expert-Grup's proposals, the NCFM recently initiated amendments to its normative acts that clarify some of the applicable norms,” added the Deputy Chairperson of the NCFM. // 30.04.2021 – InfoMarket
