VMB PARTNERS – SOLUTIONS FOR THE DEVELOPMENT OF ROMANIA
VMB Partners provides independent, borrower-oriented financial advice.
Our customers
Activity
VMB Partners represents ATU interests
Since 2001, VMB has registered a number of 49 municipal bond issues with a total amount secured of Lei 1 billion and maturities of 20 years.
The highest values of a municipal bond issue in Romania (Lei 100 million, Iasi Municipality and Timis County)
In terms of bank loans, more than 50 local public authorities have benefited from the assistance of VMB Partners consultants. With the help of VMB’s experts, the first municipal financing granted in Romania by the International Finance Corporation – World Bank was obtained.
Fear of borrowing
The grant-funded projects build in the minds of mayors and local mayors the idea that the State or the European Union must provide funding. Communism started from the idea of a better future, but today, this idea is a counterfactual mentality.
In Romania, fear of borrowing is common, as most mayors worry about paying interest and repaying the capital they borrowed.
- “I don’t borrow because there is no way I can pay it back”
- “I don’t borrow because it would mean borrowing the future of the children of the citizens of my city”
- “I don’t borrow because it remains for future local councils to pay back the loan”
- “I don’t borrow because I’m not doing anything with the money”
In reality, the principle of social equity refers to infrastructure loans as a fair distribution of financial effort between generations.
That’s why taking out a loan ensures a much faster development of the city for today’s citizens and tomorrow’s.
4 reasons why ATUs need a financial advisory firm
Protecting the interests of ATU issuers
A specialized financial advisory firm exclusively represents the interests of issuers
Selling bonds on favorable terms
The financial adviser always attracts low-interest loans.
External department specialized in loans
In companies, there is a lack of skills in issuing bonds.
Dedicated loan specialists
City hall or companies don't need a bank loan specialist every day.
Why VMB Partners?
VMB Partners is at the service of its clients, local public authorities and private companies, providing professional advisory services in order to attract the financial resources necessary for their development in the most advantageous conditions.
The company offers its clients access to a network of consultants with international exposure in areas such as local public administration, public finance, direct investments and capital markets.
Established in 1999, VMB Partners advised the first municipal bond issues in post-decembrist Romania and has realized numerous firsts in the financing of investment projects.
What our customers say about us
Nicolaie Moldovan
City Manager
Municipality of Alba iulia
A local public authority often struggles to possess all the necessary information to make the best decision when it comes to securing the necessary funding and borrowing. That is why the municipality of Zalău turned to VMB Partners SA which assisted us throughout the entire financing procedure, from loan approval to conducting repeated negotiations with the lenders, in order to secure the lowest interest rates on the contracted loans. The VMB Partners SA team has dealt with the requests of the local authority with responsibility, professionalism and objectivity, demonstrating each time that it is a true “PARTNER”.
Mariana Cuibuș
Executive Manager of the Economic Department
Municipality of Zalău
Our collaboration with VMB Partners was focused on providing consultancy services for securing financing to achieve the municipality’s investment objectives. Throughout this collaboration, VMB Partners’ staff has been involved in all stages of the funding process, thus ensuring the conditions necessary for Suceava to secure funding at the lowest possible cost.
Elisabeta Văideanu
Executive Manager, Municipality of Suceava
Executive Manager
Municipality of Suceava
VMB Partners’ consultants are knowledgeable and always keep us up to date with new information they have access to. In every instance, they proved to be open, professional, and highly engaged in addressing issues encountered in the funding process where we sought their assistance.
Gheorghina Ribovici
Executive Manager
Arad County Council
Our results
Local authorities that have chosen VMB Partners have been able to borrow at the lowest cost on the market, which means more money for investment projects and less money to pay back the loan.
Interest on municipal bonds structured by VMB Partners
| Issuer | Maturity (years) | Interest Rate(2021) |
|---|---|---|
| Municipality of Timișoara | 20 | 1.47% |
| Municipality of Alba Iulia | 20 | 2.50% |
| Municipality of Tîrgu Mureș | 20 | 2.12% |
| Municipality of Iași | 21 | 2.13% |
Interest on other municipal and government bonds
| Issuer | Maturity (years) | Interest Rate (2021) |
|---|---|---|
| Municipality of Bucharest | 10 | 5.60% |
| Ministry of Public Finance | 5 | 4.65% |
| Ministry of Public Finance | 3 | 4.60% |
| Ministry of Public Finance | 1 | 4.00% |
Steps in our collaboration
Previewing financial documents and analyzing the debt capacity according to the set objectives and project lifecycle
Setting objectives according to the final goal of each client
In case of:
Public-private partnership
1. Preparation of procurement documents for internationally recognized rating services such as Fitch, Standard & Poor’s or Moody’s;
2. Bond structuring which consists of aligning the financial interests of the issuer with the wishes of investors;
3. Assistance in broker selection;
4. Obtaining CAIL authorization and making files for approval;
5. Issue and sale of bonds;
6. Listing on the Bucharest Stock Exchange;
7. Hiring the services of a paying agent/central depository.
1. The bank selection documentation;
2. Assistance in bank selection and contract negotiation;
3.. Obtaining CAIL authorization and making files for approval;
4. Assistance with signing the contract.
Public-private partnership
1. Structuring the financing to accommodate the parties;
2. Conducting the substantiation study and public-private comparator;
3. Determination of financing parameters and possible scenarios, Monte Carlo simulations;
4. Elaboration of the documentation for the selection of the investor;
5. Establishing the legal framework through which the investment is made (share issuance, spv);
6. Assistance in negotiating and signing the contract.
Steps in our collaboration
Previewing financial documents and analyzing the debt capacity according to the set objectives and project lifecycle
Setting objectives according to the final goal of each client
In case of:
Public-private partnership
1. Preparation of procurement documents for internationally recognized rating services such as ICMA or ESG;
2. Bond structuring which is about aligning the financial interests of the issuer with what the demand of the market;
3. Assistance in broker selection;
4. Bond issuance;
5. Selling;
6. Listing.
1. The bank selection documentation;
2. Assistance in bank selection and contract negotiation;
3.. Obtaining a credit authorization and making files for approval;
4. Assistance with signing the contract.
Public-private partnership
1. Structuring the financing to accommodate the parties;
2. Conducting the substantiation study and public-private comparator;
3. Determination of financing parameters and possible scenarios such as Monte Carlo simulation;
4. Elaboration of the documentation for the selection of the investor;
5. Establishing the legal framework through which the investment is made (share issuance, spv);
6. Assistance in negotiating and signing the contract.
VMB Partners in brief
26
years of experience
1.4
billions dollars of repayable financing
50+
local public authorities served
VMB Partners Services
VMB Partners team
Oana Păun
Financial and administrative department coordinator
Careers
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and watch the video
Why ATUs need
investment planning
Benefits of Investments and implementation
steps
Mircea Tulea
Senior expert in public administration and local public finance
Perspectives
The myth of grants
In general, non-reimbursable funds, both European and national, have a number of shortcomings that lead to slow implementation of local investment projects or, not infrequently,...
Fear of borrowing, a brake on Romania’s development
The almost exclusive use of non-repayable funds to finance projects of local interest may limit the perspective from which the development possibilities of Romanian communities...
