#VictoriaBank

Ungheni borrows 10 million lei for roads on the capital market: what municipal bonds are

The town of Ungheni is borrowing 10 million lei to modernise its streets — not through a classic bank loan, but by issuing municipal bonds, that is debt securities that both residents and companies can buy. Mayor Vitalie Vrabie presented the issue at a national event in Chișinău on 1 July, alongside Leova and Ceadîr-Lunga. It is the first time Ungheni has turned to the capital market, and at 10 million lei it becomes the largest issue by a Moldovan town after the capital, from the publicly known figures. The money goes to an already approved list of roads; the interest will be paid, over time, by the local budget — that is, by the people of Ungheni.