
Chisinau City Hall to issue municipal bonds worth 65 million lei.
The corresponding decision was approved by the Chisinau Municipal Council. Municipal bonds with a maturity of 7 years will be issued with the support of MAIB, 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. These securities will allow attracting funds for the modernization of the trolleybus fleet of Chisinau: in 2021, the municipal budget planned for this purpose investments of 99 million lei - part of the funds will be paid through a loan, part of the funds - through the issue of municipal bonds. The prospectus of the public offer for the placement of Chisinau municipal bonds will be submitted to the National Commission for the Financial Market. A floating interest rate is provided for municipal bonds - the weighted average rate on government securities with circulation of 364 days for a period of 6 months preceding the placement of the coupon + fixed margin of 1.1%. According to national law, bonds issued by local government agencies are debt instruments for obtaining financing, usually for capital investments. Let us remind that this year for the first time municipal securities were issued by the mayoralties of Singera and Ceadir-Lunga - municipal bonds totaling 7.5 million lei were successfully placed on the capital market. With the money raised, the Ceadir-Lunga mayor's office plans to implement a project to improve the road infrastructure in the municipality. The mayor's office of Singera plans to finance the construction of a water pipeline in the area of Singera-Revaca at the expense of the attracted funds. // 08.10.2021 - InfoMarket