Marking the municipality’s seventh bond listing on the BVB, the issue underscores Alba Iulia’s ongoing commitment to leveraging stock exchange mechanisms for public development.
Key Features of the ALB36E Bond Issue:
Volume: 300,000 bonds at a nominal value of EUR100 each
Interest Rate: Variable (6M EURIBOR + 2.50%), payable semi-annually. The first coupon rate is set at 5.57% per annum.
Maturity Date: September 30, 2036 (with an early redemption option in 2033 after the 14th coupon payment)
Structure: Dematerialized, registered, non-convertible municipal bonds denominated in euros, fully backed by the municipality’s own revenue under Romanian local public finance law (Law No. 273/2006).
Subscription & Demand: The public offer ran from September 21 to September 25, 2026, drawing over EUR47 million in subscriptions—representing a subscription level exceeding 250%. The offer was allocated across 4 institutional investors.
Allocation of Funds: Proceeds will co-finance two major EU-backed infrastructure initiatives: a green mobility road corridor in the southwestern sector of the municipality and an underground passage near Unirea Stadium. Funds will also go toward refinancing and restructuring existing local public debt.
Leadership Perspectives
“Municipal bonds provide local authorities with a sound, efficient financial instrument that connects capital market funding directly to infrastructure development and modernization. We hope to see more city halls and county councils follow Alba Iulia’s example. The capital market is a strategic partner for public administration, offering mayors a diversified funding source for critical projects,” said Remus Vulpescu, CEO of the Bucharest Stock Exchange.
“Subscriptions exceeding 250% of the issue size prove investors’ strong confidence in our municipality and our execution capacity. The EUR30 million raised enables us to secure co-financing for key mobility projects already underway while optimizing our existing debt,” stated Gabriel Plesa, Mayor of Alba Iulia
Market Context & Consortium Partners
Over the last 24 years, Alba Iulia has listed seven bond issues. With five previously matured, two are currently active on the BVB: the newly listed ALB36E and the ALB27 issue (RON 32 million, maturing in November 2027). Across Romania, 13 municipalities and 4 county councils currently hold listed bonds on the exchange, including the country’s first green municipal bond.
The transaction was carried out with support from key financial partners:
Co-Arrangers: BRD – Groupe Société Générale and Raiffeisen Bank
Listing Representative: BRD – Groupe Société Générale
Financial Adviser: VMB Partners
“This transaction shows how the stock exchange provides tangible support for public investments that benefit local communities over generations,” said Iuliana Musat, Investment Banking Senior Director, Raiffeisen Bank
“The successful placement confirms investor trust in Alba Iulia and highlights the value of municipal bonds in complementing EU programs and national recovery grants,” stated Irina Neacsu, Executive Director of Corporate Finance, BRD – Groupe Société Générale
“Bonds offer an economically efficient and socially responsible method to align long-term infrastructure funding with the useful life of public assets,” pointed out Valentin Miron, President of VMB Partners.
Home to a resident population of over 74,000, Alba Iulia is the only municipality with under 100,000 inhabitants to rank among the Top 10 in the 2025 City Index (placing 8th overall for urban quality, prosperity, and vibrancy). The municipality holds a long-term credit rating of BBB- (negative outlook) from Fitch, with a standalone credit profile of “a-.” Its strategic priorities focus on sustainable urban mobility, energy efficiency, public digitization, educational infrastructure, and historical heritage preservation.