This is the fourth infrastructure project implemented with the use of such a financial instrument. Previously, it was successfully applied in the cities of Singera, Ceadir-Lunga and Chisinau.
The value of one bond is 1,000 lei, while the amount of the issue is 3 million lei. Victoriabank acted as a financial intermediary. The independent analytical center Expert-Grup provided methodological, expert and organizational assistance to the representatives of local authorities during the bond issue. The Embassy of the Kingdom of the Netherlands in Chisinau undertook additional expenses for the preparation of the project.
According to Irina Rosca, vice mayor of the municipality, officially presenting the project in the capital on September 3, this year, roads in the village of Sireti with a length of 2.4 km in 11 streets will be repaired with borrowed funds.
The bonds are issued only in the national currency. The state bodies responsible for finance and capital market – the Ministry of Finance and the National Commission for Financial Market – are involved in the issuance process, which significantly reduces risks for buyers.
Bonds are issued at par value, with fixed or floating interest rates and with maturities of several years. In the case of Sirec Commune, these are two and three years with fixed rates of 8.75% and 9%, respectively.
Publicity and transparency of the process are important for the issuance of bonds, as well as keeping the level of debt to the national budget below the norms set by the Ministry of Finance. In the municipality of Sirec, there are no debts and the level of own revenues is currently 10.4% of the local budget revenues.
About forty economic entities operate in the village. Several companies export agricultural products, both fresh and processed. They grow peaches, apples, cherries and cherries, process plums and walnuts, produce seedlings, etc.
