The General Mayor of Bucharest, Sorin Oprescu, rang the opening bell of the trading session on Tuesday at the Bucharest Stock Exchange (BVB), on the debut to trading of the bonds issued last week by the Municipality.
Bucharest launched municipal bonds of RON 2.2bn, at an average interest rate of 3.98% in RON. It is the best interest rate obtained by a municipality in Romania. This saves the City Hall budget RON 4mn per year.
Bucharest finalized on Tuesday, May 5, 2015, the placement and payment of the RON 2.2bn municipal bonds offering sold to institutional investors from Romania and five other countries and to other persons who have purchased bonds worth at least RON 500,000. The offer was structured in four tranches, with 3, 5, 7 and 10 years maturity. All tranches were oversubscribed.
On average, the municipal bonds were bought by about 40 institutional investors, different on each tranche. About 20% of the investors were foreigners and 80% were Romanians. Of the Romanian investors, the banks had the largest stake, nearly 40%, followed by investment funds, with a 27% stake, and pension funds with 15%. At this offering also participated international financial institutions and insurance funds.
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The General Mayor Of Bucharest Rang The Opening Bell At The Bucharest Stock Exchange
Date 05/05/2015