In addition to the RON550 million comes the coupon for the bonds rolled over, which ZF estimates at some RON20 milion and must be paid to investors this spring.
ZF sent some questions to the Bucharest City Hall on Thursday evening but no answer was received by press time.
Bucharest City Hall budgeted RON10 billion revenue for 2020 and is the city hall with the highest revenue of all Romania. Spending is estimated at some RON10 billion, according to the 2020 budget.
This rollover is nothing new for Bucharest City Hall, considering the 2015 loan is actually a refinancing of a 2005 loan, ZF has found.
The bonds should be sold to investors, among which possibly private pension funds, and then listed on the Bucharest Stock Exchange. Bucharest City Hall already has four sets of bonds on the Bucharest Stock Exchange, worth RON2.2 billion, which account for two thirds of all city loans listed on that market.
Investors on the Bucharest Stock Exchange have 40 bond issues released by municipalities in Romania to choose from, worth a total of RON3.3bilion and maturing in five to 20 years, according to ZF’s calculations based on Bucharest Stock Exchange data. Three such issues, from Bucharest, Aninoasa and Teius fall due in 2020. The earliest due date is Bucharest City Hall’s, May 4, 2020. (EUR1=RON4.7646)
(English version by Loredana Fratila-Cristescu)