Ghent's municipal council is considering introducing a 'city bond' that would allow residents to invest in urban projects in exchange for returns.
The idea, which has been under discussion for some time, is still in the research phase.
The Flemish city aims to explore whether funding from its citizens and investors can complement traditional loans. Funds raised through the scheme could support projects related to affordable housing, climate initiatives, or socially valuable infrastructure.
Various financing options are currently being studied, including traditional banking loans, European funding, and crowdfunding or crowdlending platforms. While such platforms can raise up to €5 million per year with relative ease, larger amounts come with additional regulations and costs.
Under preliminary plans, Ghent’s city bond would offer security to investors, with the municipality guaranteeing the capital invested. Returns could exceed those of a standard savings account, along with the added benefit that the investments would support tangible local projects.
The topic resurfaced following a question from city councillor Stijn De Roo (Christen Democratisch en Vlaams, CD&V). Finance alderman Christophe Peeters (Voor Gent) subsequently provided an update on the research into the plan.
A similar scheme is already in place in Etterbeek. In 2024, the Brussels municipality launched its first “community bond,” which raised €1.2 million within hours to help fund the construction of an energy-efficient nursery. A second campaign is now underway, enabling citizens to invest in several local projects, such as schools, sports facilities, youth services, and energy renovations.
However, challenges remain. Peeters has previously noted that such systems are sometimes more expensive than traditional financing methods due to higher interest rates and administrative costs. Additionally, the funds raised often fall short of broader investment needs.
Despite these concerns, Ghent residents appear to be interested in participating in such initiatives. Much will depend on the terms and the economic conditions that apply when the scheme is eventually introduced.
