{"id":4780,"date":"2021-10-14T10:50:53","date_gmt":"2021-10-14T07:50:53","guid":{"rendered":"https:\/\/www.vmbpartners.ro\/?page_id=4780"},"modified":"2025-11-13T11:47:48","modified_gmt":"2025-11-13T09:47:48","slug":"bonds","status":"publish","type":"page","link":"https:\/\/www.vmbpartners.ro\/en\/bonds\/","title":{"rendered":"Bonds"},"content":{"rendered":"\t\t
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CONSULTANCY SERVICES\n\n<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Bonds<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Secure capital market borrowing to finance ambitious projects or refinance debt, at low interest rates and under favorable conditions<\/p>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Bonds are units of debt issued by companies and public authorities that can be converted into tradable financial instruments. Simply put, bonds are just a form of borrowing and have different names depending on the profile of the issuer and where the money is being used. For example, local authorities can borrow money to invest in infrastructure projects or refinance public debt with municipal bonds, and public and private companies can obtain project finance through corporate bonds (e.g. green bonds, sustainability bonds, sustainability-linked bonds, social bonds, etc.).<\/p>

Instead of borrowing money from banks, the issuer of the bonds receives money from investors willing to buy them (such as institutions, companies or the public) against an interest rate called a coupon. The reason is simple. Most of the time, the coupon rate is lower than the rate paid for a bank loan but higher than the rate charged for a bank deposit. Investors are drawn by the high security of their investment and the fact that bonds, like shares, can be traded on the stock exchange and liquidated before maturity.<\/p>

Another advantage for the bond issuer is that the money borrowed can usually be repaid at maturity, i.e. the end of the loan period. Until then, the issuer only pays the coupon to the investor at a pre-determined frequency.<\/p>

The coupon rate is directly proportional to the risk level of the bond, which is mainly determined by the score assigned to the issuer by one of the international rating agencies (e.g: Fitch, Standard & Poor or Moody\u2019s). The better the score, the lower the coupon rate paid by the issuer.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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How we can help\n<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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  • Assistance in contracting rating services from an international rating agency and assistance during the evaluation period<\/li>
  • Analysis of financial indicators and determination of borrowing requirements and debt capacity\u00a0<\/li>
  • Structuring of municipal and corporate bond issues (amount, duration, repayment terms)<\/li>
  • Assistance in the selection of the financial intermediary for the issue and negotiation of the contractual terms<\/li>
  • Drafting of the Council Decision for the borrowing<\/li>
  • Obtaining the authorization from the Local Loan Authorization Commission Opinion<\/li>
  • Assistance in drafting of the issue prospectus<\/li>
  • Authorization of the issue by the Financial Supervisory Authority<\/li>
  • Promotion of the issue to institutional investors and individuals<\/li>
  • Assistance during the underwriting period<\/li>
  • Assistance for the listing on the Bucharest Stock Exchange<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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    Our results<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    • 49 issues of structured municipal bonds, since 2001<\/li>
    • 1 billion Lei, total amount secured<\/li>
    • 20-year maturity for bond issues<\/li>
    • Highest values of a municipal bond issue in Romania (100 million Lei, Municipality of Ia\u0219i and Timi\u0219 County)<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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