New municipal bond issue

Costeşti City Hall, Ialoveni district has launched first bond issuance worth 4.5 million lei. The financial means will be used to complete the strategic wastewater treatment and sewage system construction project, initiated 10 years ago.

This initiative is part of the project "Local Government Bonds - a Measure to Increase Local Autonomy," implemented by Expert-Grup with the support of the Embassy of the Kingdom of the Netherlands in the Republic of Moldova.

Present at the bond issuance event, the Deputy Head of the Embassy of the Kingdom of the Netherlands in Chisinau, Maaike Keizer, mentioned that this issuance is more than just a simple financial issuance; it’s a project that will contribute to local development:


"This sewage treatment plant construction project is important because, among other things, it contributes to protecting public health, the environment, and local development. By diversifying the funding sources, the Costești city hall shows the courage and determination with which a locality can attract capital from private investments. Municipal bonds constitute an instrument for localities throughout the country, creating a very close connection between the investor and local communities and contributing to the transparency of public finances."


Deputy mayor of Costeşti village Victor Ţurcanu mentioned that Costești village budget of about 50 million lei is not enough because the locality is very large. Therefore, many projects are needed to improve the quality of life, so the decision was made to issue these bonds.


"Currently, we have two major projects being implemented through the European Village II project and the Europe Approaching Project, with around 10 million lei in both projects. We also have a small project at a kindergarten where two blocks will be thermally insulated. At the House of Culture, through DRRM, we obtained chairs. Next week we will receive waste sorting bins. It is a village that needs all these things, but with all the ideas we have, we need much more finance,” noted Victor Ţurcanu.


According to the President of the National Financial Market Commission, Dumitru Budianschi, municipal bonds, along with general ones, constitute a financial instrument for supporting and developing localities with the support of locals and the diaspora.


"In the Republic of Moldova, more and more local localities appear, so far not very large, but demonstrating development, a positive trend with stabilizing demographic situations, with improving the local economic situation. People come to these respective localities, people are ready to invest in these villages, and people are tying their lives to the future of those localities. It is a sign that local financial autonomy works and can generate results at a speed at which the locality remains sustainable,” mentioned the president of the CNPF.


Costeşti City Hall offer includes the placement on the primary market of 45,000 bonds with a nominal value of 100 lei each and a total volume of 4,500,000 lei, divided into three classes of 1,500,000 lei each.

Bonds from classes I and II will have circulation terms of 2 and, respectively, 3 years, with fixed interest rates of 7.5% and, respectively, 7.7%, paid semi-annually.

Additionally, Class III bonds will be issued for a circulation term of 4 years, with a floating interest rate, paid and adjusted semi-annually, depending on the weighted effective average interest rate for government securities with a maturity of 182 days over a 6-month period preceding the coupon payment date, plus a fixed margin of 0.5%.

The offer period for the primary public bond offering will consist of 14 calendar days from the offer's launch date.

Municipal bonds were launched, for the first time in the Republic of Moldova, four years ago. These were issued by the City Hall of Chisinau municipality, the City Hall of Ceadâr-Lunga municipality, and the City Hall of Sîngera City. The total value of the municipal bonds was 72 million lei.

The most recent municipal bond issuance took place on September 3, 2025, when Sireți City Hall, Strășeni district, launched a public bond offer totaling 3 million lei. The collected funds will be used for the modernization and reconstruction of 11 streets in the locality, totaling 2.4 kilometers of local roads.