The first municipal bond issues in Moldova: the municipalities of Sîngera and Ceadîr-Lunga contract a financial intermediary
Automatically translated summary. The full article is available in Romanian.
The town hall of Sîngera and the municipality of Ceadîr-Lunga have taken another step towards Moldova's first municipal bond issues. Through an open competition they selected BC “Victoriabank” SA as financial intermediary and are now contracting it, with support from Independent Think Tank “Expert-Grup”, in a project funded by the Netherlands Embassy.
Sîngera plans an issue of MDL 5 million to build a water supply system for a new neighbourhood, where several dozen families lack access to the central network and up to three hundred families are expected to live in the coming years. Ceadîr-Lunga will invest the proceeds in improving local roads. Chișinău City Hall, also supported by Expert-Grup, is organising its own competition to select an intermediary.
By law, every bond issue must be intermediated by a professional capital market participant. The intermediary designs the instruments, sets the indicative launch calendar and attracts investors. After the contracts are signed, the next steps are opinions from the Ministry of Finance, a public offer prospectus, identification of investors, the public offer and the issue itself, expected this year. No municipal bond issue has yet been carried out in Moldova, although neighbouring countries use them widely.
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