Today, at the invitation of VMB Partners, we have attended the press conference organized by the Cluj County Council on the occasion of the first ever bond issue to finance projects in health, education, culture and road infrastructure, carried out by the County Council.
The value of the issue is 75,680,000 euros, i.e. 756,800 bonds worth 100 EUR. The principal is to be repaid in 5 annual instalments, with a variable six-month EURIBOR coupon + interest rate ranging from 0.5 to 3.5%.
The purpose of the issue is to pay off 2 loans that the County Council currently has with CEC Bank and BCR, the difference being used to co-finance European projects, i.e. to avoid over-indebtedness of the County Council.
The bonds will be tradable on the Bucharest Stock Exchange, which means that retail investors from Cluj County and beyond will be able to invest in them.
According to the authorities, the funds resulting from the bond issue will be used to finance investment projects carried out by the Cluj County Council, which are in various stages of implementation, such as: the modernization of over 160 km of county roads, part of the TEN-T network in northern Transylvania, the provision of medical equipment to hospitals in Cluj, the construction of a new building for the School Centre for Inclusive Education, the rehabilitation and enhancement of the “Bánffy Castle” Historical Monument in Răscruci.
Flavian-Cătălin PAH, founder & CEO Carpathia Investing Club: “I can’t help but appreciate the fact that a model for financing public projects, which has been working in Western Europe and America for hundreds of years, is finally coming to Cluj and I can’t help but appreciate the openness of the county authorities to such a modern approach”.
ENDS
For further information on this topic, please contact:
Carpathia Investing Club
invest@carpathiainvestingclub.org
www.carpathiainevstingclub.org | Cluj-Napoca, Romania, 400680
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About Carpathia Investing Club
Carpathia Investing Club (CIC) was founded in 2021. The club is dedicated to support individuals all around the world to better understand and apply investing principles. For first time retail investors, the club’s activity is based on a combined educational and practical approach that emphasizes the need of a proper understanding of the basic principles that govern the stock market before starting to invest. For more experienced retail investors and institutional investors, the club works as a forum that offers the opportunity to discuss and analyze various investment opportunities private and public companies.