Timisoara sells bonds worth 42m euros

The consortium made up of BCR and its brokerage company BCR Securities will sell the biggest bond issue on the Romanian market, which is worth 150 million RON (42 million euros), launched by the Timisoara City Hall. Timisoara mayor Gheorghe Ciuhandu at the end of last week announced the winner of the tender aimed to designate the broker which will handle the 20-year bond issue. The candidates were consortia Raiffeisen Bank – Raiffeisen Capital & Investment, Dexia – BT Securities (the brokerage company of Banca Transilvania) and BCR – BCR Securities. VMB provided financial consultancy to the Timisoara City Hall, and Tuca, Zbarcea & Asociatii offered legal assistance. The funds will be used to finance projects of local interest. Timisoara is at its third municipal bonds issue, after those previously brokered by HVB Bank and Raiffeisen Bank. The funding consists of a bridge loan worth 30 million RON (8.3 million euros), as well as a five-series bond issue. ZF