The Cluj County Council is launching bonds worth 75 million euros, which will be listed on the BVB

The Cluj County Council is launching the county's first bond issue, worth 75.7 million euros, which will be listed on the Bucharest Stock Exchange (BVB), according to a Council announcement yesterday.

The bonds will be issued in private placement, in the form of 756,800 titles, with a nominal unit value of 100 euros. The maturity of the loan is ten years, maturing in 2033 and with an early repayment option in 2029. The rating of the issue according to Fitch Ratings is BBB- stable outlook, standalone "A". The private placement assumes that the issue is aimed mainly at professional investors and a maximum number of 149 retail investors, according to the release.

Alin Tişe, the president of the Cluj County Council, said: "I am glad that we managed, together with the agreed consultancy, to implement this new investment tool, unique in the Cluj administrative landscape. The satisfaction is all the greater as the rating of Cluj county, certified by international specialists, is the maximum level A, higher than the sovereign rating of Romania. This, combined with the high value of the bond issue, makes me extremely confident that we will be able to accelerate the County Council's investment projects. The proposed investment plan will strengthen the position of national leader in the development of Cluj and will change the face of this county through the ambitious ongoing investment program that targets objectives of local and national interest, on multiple vital infrastructure axes: health, education, roads or culture".

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 part of the TEN-T network in northern Transylvania, the equipment medical facilities of the Cluj hospitals, the construction of a new headquarters for the School Center for Inclusive Education, the rehabilitation and enhancement of the Historical Monument Ensemble "Castel Banffy" Răscruci, etc. Also, part of the total bond issue will be used to refinance the existing public debt, according to the announcement.

The financial consultant of the Cluj County Council for the issue of bonds is the company VMB Partners, it is also mentioned in the release.