The bond offering of the Bucharest City Hall has been oversubscribed by almost 50pct, Gabriela Firea, General Mayor of Bucharest, said on Thursday at the Bucharest Stock Exchange.
“The trading of the bonds issued by the Bucharest Municipality is inaugurated today. As a first, the Bucharest Municipality has received a premium of nearly 3 million lei, which is to be appreciated. The investors were interested – commercial banks, investment, pension funds, insurers – and the issue was subscribed by over 50pct,” Firea said.
According to her, Bucharest is the largest economic growth pole in Romania, contributing almost 25pct to the GDP of the country.
“Bucharest, with all its problems, is the biggest economic growth pole in Romania. It contributes almost 25pct to the country’s Gross Domestic Product and represents 10pct of the population. For the first time since taking office, I have talked about the metropolitan area and the need for a law of the capital and the metropolis, a document that is under work and will bring a better life for all the inhabitants,” said the mayor of Bucharest.
A new municipal bond issue of 555 million lei issued by Bucharest City starts trading on Thursday on the Bucharest Stock Exchange (BVB) Regulated Market.
According to an announcement by the operator of the capital market, the bonds mature on April 23, 2028 (maturity at 10 years) and it is about 55,500 bonds with a nominal value of 10,000 lei. The coupon rate is 5.6pct.
At present, four issues of bonds launched by the City of Bucharest are traded on the Bucharest Stock Exchange.