Cluj County Council in central Romania is preparing to raise almost EUR 76 million with a bond issue scheduled for this November at the Bucharest Stock Exchange.

The bonds would have a 10-year maturity, and the funds thus derived will finance the projects in the county and partly refinance the issuer’s existing public debt.

The issuer obtained a BBB- rating with a stable outlook from Fitch and a standalone rating A for the bonds, according to a press release. The coupon attached to the bonds was not yet announced.

The private placement is addressed mainly to professional investors and 149 retail investors.

“The satisfaction is all the greater as the rating of Cluj County, certified by international specialists, is the maximum level A, higher than the sovereign rating of Romania,” said Alin Tişe, president of Cluj County Council.

He mentioned that the funds will finance projects in multiple vital infrastructure axes: health, education, roads, culture or waste recycling.

iulian@romania-insider.com

(Photo source: Cluj County Council)