Nis issues municipal bonds in late March – Over EUR 5 million needed for wastewater treatment plant

City of Nis (Photo: Ni.rs)

Late March should see municipal bonds of the City of Nis offered to investors and traded in at the Belgrade Stock Market, assistant secretary for financial affairs of the Standing Conference of Towns and Municipalities of Serbia, Aleksandar Bucic, said for Jugmedia.

Just like Sabac and Stara Pazova, Nis will also try this way to get funds for capital invetsmnets cheaper and attractive interest rate and tax free profit are the options which attract citizens and legal entities to buy them.

Nis will indebt itself more than EUR 5 m for the construction of the water treatment facility and thus open option to see private pension funds as buyers for the first time. These funds do not join the race below that amount.

Kraljevo which will launch RSD 400 m for the construction of the swimming pool is also interested while Subotica has still been considering an option of public municipal options emission.

Just to remind, Sabac is the first town which sold bonds via public bidding. Buyers were citizens as well, not only domestic and foreign legal entities as it has been the case so far. Successful emission and demand for municipal bonds which was 50 % higher compared to offered RSD 400 m was well-accepted in other towns as well. Many towns wished to fund local and capital projects this way.

Late February will see Stara Pazova doing it. It will release bonds totaling RSD 125 m for construction of kindergarten, sports hall and rehabilitation of roads.