The Municipality of Bucharest (PMB) completed the issuance and placement of bonds with a total nominal value of RON 555.1 million (EUR 111 million), PMB announced in a note to investors at the Bucharest Stock Exchange, where the bonds will be listed.
The issue was heavily oversubscribed, with banks placing orders for 190% of the target volume, mayor Nicuşor Dan announced in a press conference, according to Economica.net.
Nicuşor Dan also recalled that two days ago, Fitch reconfirmed Bucharest’s individual rating at “A,” four notches above Romania’s rating.
The bonds are denominated in RON, issued in dematerialized form by registration in the account, unsecured, non-convertible, with a fixed annual interest rate of 8.47% and a maturity of 6 years. The bonds were sold in Romania to 26 qualified investors.
The prospectus will be published when securities are offered to the public or admitted to trading on a regulated market.
The placement was carried out by the association formed by Alpha Bank Romania, Banca Comercială Română, BRD – Groupe Societe Generale, and Raiffeisen Bank and took place on April 16 – 17, 2025 (bookbuilding).
The Issuer will take the necessary steps to admit the bonds to trading on the regulated market administered by the Bucharest Stock Exchange, the PMB said in the report.
The Municipality of Bucharest has three other bonds listed at Bucharest Exchange – RON 555 million issued in April 2018 and maturity in 2028 (with a 5.6% coupon), RON 555 million issued in April 2022 and maturing in 2032 (7.33% coupon), and RON 555 million issued in April 2023 and maturing in 2030 (8.9% coupon).
In 2005, during the term of former mayor Adrian Videanu, bonds of EUR 500 million were issued, a loan later divided into four tranches of RON 555 million. Since then, the four tranches have been refinanced.
iulian@romania-insider.com
(Photo source: Inquam Photos/George Calin)