Timisoara City Bonds Worth 30 Mln Lei (8.4 Mln Euro) To Start Trading on Romanian Bourse on Oct 27

Timisoara issued 300,000 bonds with a face value of 100 lei each on June 26. The bonds will mature on May 15, 2026, the BVB said in a statement.

The bonds bear a quarterly interest rate equal to the arithmetic average of the three-month Romanian interbank rates ROBOR and ROBID plus a spread of 0.1%.

It is the fourth tranche of the third issue of Timisoara municipal bonds since 2003. The bonds from the first tranche started trading on the BVB in June 2007 and were last traded on October 10 at 100 lei, unchanged from the previous close.

The bonds from the second and the third tranche started trading on May 9. Bonds from the second thance were last traded on June 3 at 100 lei, unchanged from the previous close, while those from the third tranche have not been traded since their launch.

Timisoara's third bond issue, managed by Banca Comerciala Romana, will have a total of five tranches, each worth 30 million lei. Timisoara, Romania's fourth-largest city, will use the proceeds from the bond issue to finance investment projects.

Timisoara issued a 10 million lei bond in 2003 and a 20 million lei bond in June 2005.

(1 euro = 3.5511 Romanian lei)