VMB Partners was the financial advisor to Cluj County Council for the Euro 76 million bond issue, from which Cluj will finance its investment projects. Part of the total bond issuance will also be used to refinance existing public debt. VMB has structured the majority of municipal and county bond issues listed on the Bucharest Stock Exchange since 2001, when the first issue by a public administration in Romania took place.
“Local government bond issues offer investors diversified investment instruments, at a time when the Romanian capital market is in dire need of them. The value of the Cluj County issue as well as the reputation of the Issuer will certainly be important factors of attractiveness. For individual investors, there is also the fact that the income is not taxable.”
Valentin Miron, President VMB Partners.
Cluj County Council is preparing to raise nearly Euro 76 million in November 2023 from investors on the Bucharest Stock Exchange in a 10-year bond issue that will support investment projects in the county, says Ziarul Financiar. Part of the total bond issue will be used to refinance existing public debt.
“The investment plan proposed today will strengthen Cluj’s position as a national leader in the development plan and will change the face of this county through the ambitious investment program currently underway, which targets objectives of local and national interest, on multiple vital infrastructure axes: health, education, roads, culture or waste recycling”, says Alin Tișe, President of Cluj County Council.
The funds resulting from the bond issue will be used to finance investment projects carried out by Cluj County Council, which are in various stages of implementation, such as: modernization of over 160 km of county roads, which are part of the TEN-T network in northern Transylvania, equipping with medical equipment of hospitals in Cluj, building a new headquarters for the School Center for Inclusive Education, rehabilitation and enhancement of the Historic Monument “Bánffy Castle” Răscruci, etc. Part of the total bond issue will also be used to refinance existing public debt.
Alin Tișe, President of Cluj County Council: “I am glad that we managed, together with the agreed consultee, to implement this new investment instrument, unique in the Cluj administrative landscape. The satisfaction is all the greater as Cluj county’s rating, certified by international specialists, is the maximum A level, higher than Romania’s sovereign rating. This, coupled 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 investment plan proposed today will strengthen Cluj’s position as a national leader in development and will change the face of this county through the ambitious investment program currently underway, which targets local and national objectives of local and national interest, on multiple vital infrastructure axes: health, education, roads or culture”.
