The listing of the bonds of the Municipality of Resita (RES33E) was carried out following a private placement in November 2023, during which the municipality raised EUR 8.8mn, through the issuance of 88,296 bonds, non-convertible, guaranteed and denominated in EUR.

"We are happy to be the first city in Romania to issue green municipal bonds, and today's listing on the Bucharest Stock Exchange is an important step in realizing our ambitious green investment plan in Resita", stated Ioan Popa, Mayor of Resita.

The funds raised through the bond issue will be used to co-finance the project to reintroduce the electric tram in Resita, respectively the renewal of the transport operator's rolling stock (13 trams and 10 electric buses) and the development of the transport infrastructure in Resita.

The bonds have a nominal value of EUR 100, a variable interest (EURIBOR + 3.5% p.a.) and maturity in 2033. The coupon is payable semiannually, and the principal will be repaid in 5 annual installments (12% in 2029, 18% in 2030, 20% in 2031, 23% in 2032 and 27% in 2033), and after each repayment, the face value of each bond will decrease proportionately.

"We want the example of Resita City Hall to be followed by other local authorities to support the sustainable and green development of the communities they represent. Bond issues offer the diversification of financing sources for both companies and local administrative authorities, and at the same time allow a more appropriate financing of the projects implemented on the long term that imply long-term financial requirements”, said Adrian Tanase, Bucharest Stock Exchange CEO.

The municipality of Resita joins 15 other cities and 5 counties in Romania that currently have bonds listed on the BVB. It is about the counties of Alba, Bihor, Cluj, Hunedoara, Timis and the cities: Alba Iulia, Bacau, Bistrita, Bucharest, Focsani, Iasi, Navodari, Oravita, Orastie, Predeal, Siret, Slobozia, Targu Mures, Timisoara, Zalau.

The issuer has the early redemption option in 2029.

According to the rating agency Fitch, the Municipality of Resita has a score of BBB- with a stable outlook and independent credit bbb+, and according to the assessment carried out by Morningstar Sustainalytics, this bond issue meets the four basic components of the Green Bond principles (Usage of funds, Process of Project Evaluation and Selection, Revenue Management and Reporting Framework).