Moldova’s Sireți village plans second municipal bond issue

The village of Sireți is preparing a second issue of municipal bonds

The village of Sireți, in the Strășeni district, is planning a second issue of municipal bonds. In 2025, the village council issued its first tranche of securities. The next bond issue is scheduled for the summer of 2027, so that this important event for the village does not coincide with the local elections, which are scheduled for autumn 2027.

Leonid Boaghi

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Sireți is a pioneer in the municipal securities market. It is the first rural mayor’s office in Moldova to have utilised this instrument at village level. Rural mayor’s offices have not promoted it until now. Issuances by towns – such as Cădâr-Lunga, Sîngera and Chișinău – are better known.

Not just the stock exchange

Leonid Boaghi, mayor of the village, spoke about the experience of using this capital market financial instrument – which is relatively new to Moldova – during the Capital Market Forum 2026, held on the first day of Moldova Business Week 2026. The main discussion focused on the activities and opportunities offered by the International Stock Exchange of Moldova, but the organisers also included the mayor’s presentation in the programme.

“Our first issue took place in September 2025,” said Leonid Boaghi. “We had planned for it to run for 30 days, but the 3 million lei worth of bonds sold out in just one week. We had hoped that most of the investors would be from our village, so that the interest payments would flow back into Sirț. Unfortunately, buyers from the village were in the minority. Next year, we will definitely run a more active information campaign, starting at the beginning of the year, to prepare residents in advance.”

As the mayor explained, a second issue is planned for 5 million lei. This is a provisional figure for the time being; the exact amount is not yet known, as it is linked to the village’s 2027 budget, which has not yet been adopted.

By law, there is a restriction whereby the issue of municipal bonds is permitted only up to an amount not exceeding 20 per cent of the mayor’s office’s own revenue. If the budget increases, both the percentage and the amount will be higher.

Advantages of municipal bonds

The local council intends to promote this initiative also for the purpose of co-financing state projects, but the bulk of the funds in the village are planned to be channelled towards the construction of concrete roads.

‘That is what the villagers have decided,’ continues the head of the Sireț administration. ‘The advantage of this process is that we receive the money straight away, and the village has sufficient means to repay it from the road fund within 3–4 years. Another advantage is that the roads are built immediately and at current prices. Our road fund amounts to 2 million lei, and with the funds raised as planned, we will be able to purchase more materials straight away and start construction.

The second advantage of this financial instrument is that we can combine municipal bonds with contributions from residents. And they are willing to co-fund the roads, the water supply and the sewerage system.

And the third is that income from municipal securities is not subject to personal income tax.’

As the mayor explained, the first issue, amounting to 3 million lei, was also allocated to roads. Moreover, residents contributed almost half of the necessary funds.

“With the help of bonds, residents’ contributions and the village budget, we have built almost 4 km of roads. That is more than in the last few years,” he said on the sidelines of Moldova Business Week 2026.

This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.

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