March 5 (SeeNews) - A 10-year green bond worth 8.8 million euro ($9.55 million) issued by Romania's Resita municipality started trading on the Bucharest Stock Exchange (BVB), the bourse said on Tuesday.
This is the first green bond issued by a local government authority in Romania, the BVB said in a press release.
Funds raised through the bond issuance will support the municipality's green investment plan, particularly the acquisition of 13 electric trams and 10 electric buses, and the modernisation of transport infrastructure.
The private placement of 88,296 bonds, which are non-convertible, guaranteed, and euro-denominated, was conducted in November 2023. The bonds, trading under the ticker RES33E, have a nominal value of 100 euro and a variable interest rate equal to EURIBOR plus 3.5% per year. The coupon is payable semiannually, while the principal will be repaid in 5 annual installments. The issuer has an early redemption option in 2029.
Resita is located in the southern county of Caras-Severin and has a population of some 58,400 people.
($=0.921427 euro)