Ribeira Grande de Santo Antão has become the fourth municipality to issue bonds on the Cape Verde Stock Exchange (BVC), raising US$1.32 million for debt restructuring and investments.
The bond, valued at 130 million escudos (approximately US$1.32 million), is targeted at qualified investors, offering a 4% annual interest rate and a maturity period of 10 years.
Payments towards the debt will be made bi-annually, with the Banco Comercial do Atlântico handling the settlements.
The municipality’s mayor, Orlando Delgado indicated that the funds would provide significant relief, reducing their monthly bank credit payments.
The savings will allow the municipality to consider further bond issuance for additional investments.
Delgado, serving the municipality since 2005, emphasized the challenges Cape Verdean municipalities face in accessing resources for development and fostering a conducive environment for private sector growth.
Miguel Monteiro, the BVC’s president, reiterated the exchange’s commitment to supporting local authorities in achieving their developmental goals.
He anticipates more municipalities to explore the capital market for financing, marking a trend towards improved local living conditions and sustainable development.
Ribeira Grande follows Sal, Praia, São Domingos, and Mosteiros in issuing bonds on the BVC.