The Brussels municipality of Etterbeek has raised 1.12 million euro in just one day in what was Belgium’s first ever municipal bonds issue. With the amount needed by the municipal authorities having been raised, the crowdlending campaign has been temporarily put on hold.
This is the first ever municipal bond to be issued in Belgium. The principle is the same as with government bonds. Etterbeek will use the money raised by the bonds issue to invest in local climate projects.
In press statement the municipal authorities in Etterbeek said that “The municipal bond was launched on 4 September 2024 and was so successful that the maximum amount (EUR 1,119,500) was raised in just one day”. The service provider Spreds has now temporarily closed the bonds issue campaign and a waiting list has been created for those who still want to invest in it.
The money raised by bonds issue wil be used to co-finance a passive building that will house a nursery. The work on the nursery should be completed by early 2026, by which time investors should have recovered their investment capital plus interest.
Those wishing to invest had to invest at least 1,000 euro. The gross interest rate was set at 4.5% for residents of Etterbeek and 4% for people from outside the municipality.