The Municipality of Resita lists the first issue of green municipal bonds on the Bucharest Stock Exchange
- The bond issue has a value of EUR 8.8mn and a maturity of ten years.
- This is the first issue of green bonds of a local administrative authority in Romania.
- The municipality was assisted in the private placement by BRK Financial Group, as intermediary, and VMB Partners, as financial consultant.
The first green municipal bonds on the local capital market, issued by the Municipality of Resita, debuted on the Bucharest Stock Exchange (BVB), on Tuesday, March 5.
The listing of the bonds of the Municipality of Resita (RES33E) was carried out following a private placement in November 2023, during which the municipality raised EUR 8.8mn, through the issuance of 88,296 bonds, non-convertible, guaranteed and denominated in EUR.
“Resita, city with history, city with future! Named in the interwar period the father of Romanian industry, Resita proves, after almost 100 years, that it is an innovative city, a green city. We are happy to be the first city in Romania to issue green municipal bonds, and today’s listing on the Bucharest Stock Exchange is an important step in realizing our ambitious green investment plan in Resita”, stated Ioan Popa, Mayor of Resita.
The funds raised through the bond issue will be used to co-finance the project to reintroduce the electric tram in Resita, respectively the renewal of the transport operator’s rolling stock (13 trams and 10 electric buses) and the development of the transport infrastructure in Resita.
“We congratulate the Municipality of Resita for the initiative to issue green municipal bonds, which represents a double first, primarily because it is Resita’s first step on the capital market and, at the same time, they are the first green bonds issued by a municipality. In recent years, Bucharest Stock Exchange has demonstrated that it is a solid partner for attracting financing both by companies and by county councils or town halls for the development of projects to improve the communities they manage”, said Radu Hanga, Bucharest Stock Exchange President.
05.03.2024 / Editor, Andreea Dragan
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