Sîngera and Ceadîr-Lunga Town Halls – the First Local Authorities in Moldova to Launch Municipal Bond Issues
Automatically translated summary. The full article is available in Romanian.
The town halls of Sîngera and Ceadîr-Lunga have launched the first municipal bond issues by local public authorities in the Republic of Moldova. The public offers, supported by Victoriabank, are part of a project implemented by the Independent Think Tank “Expert-Grup” with funding from the Dutch Embassy.
Sîngera plans to raise MDL 4.5 million for a water supply line in the new Sîngera-Revaca neighbourhood, issuing two- and three-year bonds. Ceadîr-Lunga aims to raise MDL 3.0 million to rebuild 11 road sections, with three-year bonds. Each bond has a nominal value of MDL 1,000. Both town halls obtained opinions from the Ministry of Finance, and the National Financial Market Commission approved the prospectuses.
Any individual or legal entity can buy the bonds. Local authorities can borrow on more attractive terms than ordinary loans, while investors can earn higher interest than on bank deposits, use the bonds as collateral or sell them on the secondary market. Subscription runs from 5 August to 3 September 2021, with possible early closure. Speakers from Victoriabank, Expert-Grup and the Dutch Embassy stressed capital market development, financial autonomy and better governance.
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