City Hall Singera and Ceadir-Lunga City Hall have successfully completed the process of subscribing, registering and admitting for trading the municipal bonds to the “Stock Exchange of Moldova” S.A.
Victoriabank, as an intermediary, assisted the Local Public Authorities in registering the issued bonds on the Moldovan Stock Exchange (MSE), within the Multilateral Trading System (MTS). Thus, starting with September 28, 2021, the municipal bonds, issued by the City Hall Singera and Ceadir-Lunga City Hall, with the support of the Independent Expert Center "Expert-Grup" and the mediation of B.C. Victoriabank, can be traded on the MTS platform, managed by MSE.
The municipal bonds, according to the reports on the results of the bond issues, issued by the Local Public Authorities, were registered in the Register of securities issuers based on the Decisions of the National Commission of the Financial Market no. 49/6 and no. 49/7 of 25.08.2021.
Municipal bond issues were fully subscribed in less than a week after the launch of the Public Offerings, receiving a total of 37 applications from individuals and legal entities.
The funds in the total amount of 7.5 million MDL, collected from investors will be directed to the developing local infrastructures and increasing the comfort level of the population of the two localities, with a direct positive impact for about 30,000 inhabitants.Ceadir-Lunga City Hall will use the funds attracted in the amount of 3 million MDL to implement a project to improve the road infrastructure in the municipality, and Singera City Hall with the funds attracted in the amount of 4.5 million MDL will build an aqueduct in Singera-Revaca neighborhood.
“We are honored to mediate the first issues of municipal bonds in Moldova, managing to close in advance the bond placements, issued by the City halls of Ceadir-Lunga and Singera. Providing brokerage services to Local Public Authorities is further proof that Victoriabank's priorities include introducing and promoting new services, products and technologies on the financial market in the Republic of Moldova”, said Natalia Paraschiv, Victoriabank's Treasury Director.
The launch of the first municipal bonds in the Republic of Moldova is initiated by the Independent Analytical Center "Expert-Grup" within the project "Local government bonds - as a measure to increase local autonomy", funded by the Embassy of the Kingdom of the Netherlands in the Republic of Moldova.
This success is considered the beginning of a new stage of development on the capital market in the Republic of Moldova.The terms and conditions of the Public Offers:
|The description ||Issuer City Hall Singera||Issuer City Hall Ceadir-Lunga |
|Type of securities (bonds)||Municipal bonds, issued in dematerialized form by registration in the account, non-convertible, guaranteed by the income of the administrative-territorial unit|
|Securities class||Class I bonds||Class II bonds||Class I bonds|
|he term of issuance / circulation of bonds||2 years||3 years||3 years|
|Total nominal value of the issue||2,000,000 MDL||2,500,000 MDL||3,000,000 MDL|
|The nominal value of a bond||1,000 MDL||1,000 MDL||1,000 MDL|
|Total number of bonds issued||2,000 units ||2,500 units ||3,000 units |
|Type of interest rate applied||Fixed interest rate||Fixed interest rate||Fixed interest rate|
|Periodicity of interest payment||semiannually ||semiannually ||semiannually |
|The interest rate, %||6.50% per annum||6.70% per annum ||6.60% per annum |
|Subscribed volume||2,000,000 MDL||2,500,000 MDL||3,000,000 MDL|
|Other information regarding the Issuer's securities|
Date of issue of the bonds: 26.08.2021; Date of maturity of the bonds: 26.08.2023; Interest Payment Dates (coupons): 26.02.2022,26.08.2022, 26.02.2023,26.08.2023
Date of issue of the bonds: 26.08.2021; Date of maturity of the bonds: 26.08.2024; Interest Payment Dates (coupons):26.02.2022,26.08.2022, 26.02.2023,26.08.2023,26.02.2024, 26.08.2024
Date of issue of the bonds: 26.08.2021; Date of maturity of the bonds: 26.08.2024; Interest Payment Dates (coupons):26.11.2021, 26.02.2022, 26.05.2022, 26.08.2022, 26.11.2022, 26.02.2023, 26.05.2023, 26.08.2023, 26.11.2023, 26.02.2024, 26.05.2024, 26.08.2024
|The reference date, on which the list of bondholders, who are entitled to receive interest (coupons), will be completed, is (T -3), where T is the Interest Payment Date, and 3 means 3 working days, excluding the Interest payment date. |