SOFIA MUNICIPALITY PLANS NEW ISSUE OF EUROBONDS

Business | February 15, 2002, Friday // 00:00

Sofia Mayor Stefan Sofianski announced plans for a new issue of Eurobonds. He did not disclose any further details saying only that the issue is due after Sofia repays its first eurobonds loan. A 1999 issue of Sofia Eurobonds matures on June 3 this year. Payments on it will total BGN 97,791,500 of which BGN 76,500,000 are included in the 2001 municipal budget and the rest will be paid with the municipality's own revenue. Another BGN 9.5 M is due in interest on the eurobonds loan this year.The Sofia City Council added an annex to a May 3, 1999, decision, referring to the total expenses on the Eurobond issue. They agreed that "total expenses on the Eurobond issue of 10.5%" should include the expenses for interest payment of 9.75% a year; a 0.5% discount on the par value of the bonds for a total of EUR 250,000; EUR 165,000 in additional expenses of the bank that acts as an intermediary for the Eurobond issue; and expenses for acquiring and keeping up a credit rating. The expenses involved in the issue of the Sofia Eurobonds were used by prosecutors to press charges for criminal breach of trust against Mayor Sofianski on January 11.

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