It is the eighth bond issue of the Bucharest City Hall listed on the stock exchange over the last 10 years.
As part of the private placement conducted by the City Hall in April 2025, 26 institutional investors subscribed. The 55,510 registered, non-convertible, unsecured bonds, denominated in lei, have a nominal value of RON10,000, a fixed interest rate of 8.47% and a six-year maturity, i.e. April 23, 2031. The funds raised by the City Hall are intended to refinance the public debt of the Municipality of Bucharest, which stems from the bond issue maturing in May 2025.
Currently, the City Hall has 3 other bond issues available for trading on the stock exchange: PMB 32, PMB30 and PMB28. The latest is the bond issue with the stock symbol PMB30, which was listed 2 years ago and matures in 2030.
“Through this new issuance of municipal bonds, we reaffirm not only Bucharest’s robust financial standing, but also our unwavering commitment to transparency, stability and continuity in the city’s development. The fact that the issuance was oversubscribed is a clear indication of the strong confidence investors place in the local administration. I sincerely thank all those involved for this resounding vote of confidence and for their continued trust. I also wish to express my appreciation to the members of the underwriting consortium for their professionalism throughout this transaction. This achievement sends a strong signal that the efforts undertaken in recent years are delivering tangible results, and that Bucharest is increasingly positioning itself as a model of sustainable financial governance within the local public administration (…),” stated Nicusor Dan, General Mayor of the Municipality of Bucharest.
“Over the last 10 years, Bucharest City Hall has consistently turned to financing through the capital market to continue its ongoing plans. PMB’s eighth bond issue is yet another confirmation that local public institutions can benefit from long-term support from the stock exchange. We want more and more local institutions to follow PMB’s example and view the capital market as an important partner when it comes to financing and development solutions,” said Radu Hanga, President of the Bucharest Stock Exchange.
Currently, the municipal bonds of five counties and 16 cities in Romania are listed on the local stock exchange, namely, the counties of Alba, Bihor, Cluj, Hunedoara, Timis and the cities and towns of Alba Iulia, Bacau, Bistrita, Bucharest, Focsani, Iasi, Navodari, Oravita, Orastie, Predeal, Resita, Siret, Slobozia, Targu Mures, Timisoara, Zalau.
The brokerage consortium for the Bucharest City Hall’s bond issue and private placement consisted of Banca Comerciala Romana (BCR), as the originating intermediary, along with Alpha Bank Romania, BRD – Groupe Societe Generale (BRD), and Raiffeisen Bank, as intermediaries.
“The admission to trading on the Bucharest Stock Exchange of the bonds issued by the Municipality of Bucharest shows that local governments can successfully access capital market financing in a competitive and professional manner. We are pleased to be part of the consortium that supported this issue and to contribute, through BCR’s expertise, to the development of a mature financial framework for Romanian cities that invest in the community with vision and responsibility.” said Cosmina Plaveti, Managing Director Investment Banking BCR.
According to rating agency Fitch, the Municipality of Bucharest has a BBB- (negative outlook) long-term debt rating. The standalone credit profile of the Municipality of Bucharest is “A” starting April 2023 and reconfirmed in April 2025.
According to statistical data from 2023, the Municipality of Bucharest has a population of 1.7 million people (resident population), of which 1.1 million people are employees, more than 135,000 active companies, and a gross domestic product (GDP) of RON427 billion.