The municipality of Stip is the first municipality that will try to secure four million euros through municipal bonds, the Securities Commission announced.
The Securities Commission passed a decision giving approval to the Municipality of Stip for issuing long-term debt securities through a public offering. This is the first issue of municipal bonds on the domestic capital market, which enriches the offer of financial instruments in our country, according to the announcement of the Securities Commission.
The municipality of Stip will issue 8,000 municipal bonds with an individual nominal value of 500 euros and a total nominal value of 4.00 million euros. The maturity date of the issued bonds is seven years from the date of registration of the bonds in the Central Depository. Municipal bonds have a fixed annual interest rate of 4.75 percent. The principal will be paid in full along with the last interest, that is, after the expiration of seven years from the date of registration of the bonds.
Buyers can be domestic and foreign individuals and legal entities.
The emission is carried out for the purpose of raising funds for the financing of several infrastructure and capital projects of the municipality.