As part of the strategy to promote the development of Romania’s capital markets, European Bank for Reconstruction and Development (EBRD) has acquired a 4.99 percent stake in the Bucharest Stock Exchange (BVB), ‘demonstrating its support for Romania’s comprehensive efforts to strengthen local capital markets’, a press release reads.
Through this equity interest, the EBRD is supporting the Romanian government’s comprehensive capital market development programme, which aims to improve the functioning of the local capital markets, enhance liquidity and increase availability of debt and equity offerings in the local capital markets.
The modernisation and development of the Romanian capital market, which began around a year ago, has already brought unprecedented positive results. In this context, EBRD First Vice President Phil Bennett, said: “The Bucharest Stock Exchange aims to act as a catalyst in financing the country’s economy. As a shareholder, the EBRD will assist in the further development of corporate governance at the bourse and in listed companies. We will work to establish the Bucharest Stock Exchange as the preferred exchange for Romanian issuers and traders, as well as for investors with an appetite for Romanian stocks and other financial instruments”.
Romania has set a goal for the bourse to be upgraded to emerging market status – whereby Romanian stocks would be included in the MSCI Emerging Markets Index –from its current placement in the MSCI Frontier Markets Index. The EBRD will support legal and regulatory reforms to help achieve this goal.
In his turn Ludwik Sobolewski, CEO BVB, said: “Our plan is to build a modern, well-performing capital market, with the Bucharest Stock Exchange at its heart. We want it to become the financial hub for southern and eastern Europe, a new centre for business and innovation, and thus to enrich the investment landscape of the region. I am proud that the BVB has a new shareholder in the financial world that demonstrates values which are crucial for economic growth and sustainable development.”
In Romania, the financial institution has invested in the recent IPOs of electricity distributor Electrica and natural gas producer Romgaz, and has also participated in all bank bond issues in the last two years under a dedicated framework. The Bank is also working with the BVB to improve its Corporate Governance Code for listed companies. BVB’s total market capitalisation is almost EUR 30 billion.