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Bonds issued by the Cluj County Council, worth 75.7 million euros, debut on Thursday, January 18, at the Bucharest Stock Exchange (BVB), according to an announcement by the operator of our capital market.
The bonds, with a nominal unit value of 100 euros, have a maturity of ten years, with maturity in 2033 and an early repayment option in 2029. The interest rate is 3.25% plus six-month EURIBOR. The issue's rating according to Fitch Ratings is BBB- stable outlook, standalone "A".
The bonds were sold in December of last year, through a private placement, addressed to qualified investors, of which banks mainly bought, but an increased interest was also observed from asset managers and pension funds, according to a press release from last month.
The funds resulting from the bond issue will be used to finance the investment projects carried out by the Cluj County Council, which are in various stages of implementation, such as: the modernization of over 160 km of county roads that are components of the TEN-T network in northern Transylvania, the provision of medical equipment of Cluj hospitals, building a new headquarters for the School Center for Inclusive Education, etc. Also, part of the total bond issue will be used to refinance the existing public debt.
The private placement was carried out by the consortium formed by BT Capital Partners, Alpha Bank and Raiffeisen Bank, while VMB Partners was the financial consultant of the Cluj County Council for the bond issue.
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