consetetur sadipscing elitr, sed diam nonumy eirmod tempor invidunt ut labore et dolore magna
Public relations section
The mayor of Plovdiv Mr. Ivan Chomakov, the CEO of Raiffeisenbank Mr. Momtchil Andreev and the Executive director Ms. Evelina Miltenova officially signed the final papers of the EUR 25 mln. bond, issued by Plovdiv Municipality. The bank offered to the municipality the most favorable financial terms. The Municipal Council has selected Raiffeisenbank in competition among 10 financial institutions and international consortiums, after a 4–month bid. The bank is able to lend the first EUR 5 mln. to Plovdiv municipality straight after the official signing, thus helping the municipality to start the realization of its infrastructure projects until the end of the year.
This is the first unsecured bond of Plovdiv Municipality, issued according to the Municipal Debt Bill. The bond has a par value of EUR 25,5 mln., 15 years bond term and a fixed coupon of 2,875% p.a. Raiffeisenbank is the Lead Manager and Underwriter of the transaction. The effective annual interest expense amounts to 3,87%. The bond is without penalty expenses; it has 4-year grace term, as well as 2-year grace term for the fees. Raiffeisenbank is ready to consult the municipality for the effective management of the finances. The fixed coupon secures the issuer of future floatation on the financial markets. The principal is payable in 22 equal 6-month payments as the first payment is due 4 years after the signing.