Novi Sad Assembly votes for issue of municipal bonds worth RSD 3.5 billion

(Novi Sad)

The City Assembly of Novi Sad on Friday (May 27, 2011) accepted the proposal of the City Council concerning the issue of RSD 3.5 billion municipal bonds by the City.

A total of 40 aldermen voted for that decision, 23 members of the Serbian Radical Party and the Democratic Party of Serbia were against it, while the aldermen from the United Regions of Serbia were not present in the room during the voting.

According to the City Council's proposal, the bonds will be issued through UniCredit Bank with the fixed annual interest rate of 6.25 percent.

Novi Sad will be the first city in Serbia to take out a loan by selling municipal bonds.

The plan is that these securities be issued in accordance with the project duration, meaning that not all bonds will be issued at once but according to the needs.

A total of four bids have been submitted for the participation in the issue of municipal bonds of Novi Sad.

A joint bid has been submitted by Banca Intesa, Hypo Alpe Adria Bank, Komercijalna, and Societe Generale Bank, while UniCredit Bank, Erste Bank and Citadel broker company have submitted individual bids.