Bucharest Mayor Office gets offers from two financial-banking ventures for bonds issue on 10 years

Georgiana Bendre 19/02/2018 | 13:41

Banca Transilvania- BT Capital Partners venture and BCR, BRD and Raiffeisen Bank venture have submitted two offers at Bucharest Mayor Office for a bonds issue on 10 years. The objective of the issue is to refinance one of the four bonds issue launched in 2015, in value of RON 555 million, with three year maturity with the due date on May 4, 2018, according to News.ro.

In 2015, Bucharest Municipality took a loan of EUR 100 million for 10 years via an Eurobonds issue on the international capital market, in order to make major investments projects.

For the refinance, with the maturity in June 2015, Bucharest municipality has taken four reimbursable finances under four bonds issues worth RON 2.22 billion, each worth RON 555 million.

The first one has a three year maturity with the due date on May 4, 2018, when the Bucharest mayor Office should pay this installment.

To refinance this issue, the Bucharest Office launched a tender on February 6, through which it contracts financial intermediation services of the issue, regarding the offer/placement, as well as the approval of the bonds transaction.

The value of the contract for the financial services reaches RON 2 million, without VAT, amount paid from the local budget.

The submissions were opened at the Bucharest Mayor Office on February 14 and were submitted 2 offers. The bonds issue for the installment refinance with maturity on May will be made via a public offer for investors who qualify, and will comprise municipality bonds, without guarantee with 10 year maturity. The bonds, which will be issued on April 20, will have a fixed interest rate, paid annually. They will be listed ob the Bucharest Stock Exchange (BVB).

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