EBRD becomes Bucharest Stock Exchange shareholder with 4.99 pct stake
The European Bank for Reconstruction and Development (EBRD) acquired 4.99 percent of the Bucharest Stock Exchange (BVB) shares, amid such circumstances that the BVB is the centre of the Romanian capital market and the largest stock exchange in Southeastern Europe, the financial institution announced in a release on Wednesday.
Photo credit: (c) Cristian NISTOR / AGERPRES ARCHIVE
According to it, by this stake-holding, the EBRD backs the complex programme of the Romanian Government aimed at developing the capital market, which seeks to improve the functioning of the market, increase its liquidity and the availability of the bond—and equity offerings in the local capital market.
'Romania has set the 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', the EBRD said.
According to EBRD First Vice President Phil Bennett, "as a shareholder, the EBRD will assist in the further development of corporate governance at the bourse and in listed companies."
Ludwik Sobolewski, CEO of the Bucharest Stock Exchange explained that the Romanian authorities' objective is that the BVB should become a financial hub for Southern and Eastern Europe as well as a new centre for business and innovation.
"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," Sobolewski said.
The Bucharest Stock Exchange has been listed on its own regulated market since 2010. As of September 2014 it listed 83 companies including the largest corporation in Romania OMV Petrom, Romgaz, Fondul Proprietatea, BRD Groupe Societe Generale, Banca Transilvania, Electrica and Transgaz. The total market capitalisation is almost 30 billion euros.