April 26 (SeeNews) - A new bond issue of Bucharest Municipality worth 555 million lei ($146 million/119 million euro) started trading on Thursday on the regulated market of the Bucharest Stock Exchange (BVB), bourse data showed.
The bonds bearing a coupon 5.6% will mature on April 23, 2028, BVB said in a statement.
The bookbuilding held on April 18, was oversubscribed by over 50%. The city placed a total of 55,500 bonds with a nominal value of 10,000 lei each. The bonds were sold in Romania to 24 qualified investors.
The city government will use the funds raised in the placement to repay a previous issue of 500 million euro of 10-year bonds which matures in May.
The private placement was managed by a consortium led by an association of three banks BCR, BRD – Groupe Societe Generale and Raiffeisen Bank.
Overall, four bond issues of Bucharest Municipality have traded on the BVB since 2015.
(1 euro =4.6490 Romanian lei)