Tag: listing

  • June 23, 2023 UPDATE

    June 23, 2023 UPDATE

    SECURITY We are under an obligation to provide
    security to the Republic of Moldova, because Romanians also live there, PM Marcel Ciolacu said on Friday.
    The previous day the Romanian Foreign Ministry firmly condemned the statements
    made by the Russian-installed
    governor in occupied Kherson, Vladimir Saldo. The Romanian diplomacy says in a
    Twitter post that such statements addressed to the Republic of Moldova, but
    which also refer to a part of the territory of Romania, a member of NATO, are
    unacceptable and that targeting civilian infrastructure is a war crime. The
    reaction comes after Saldo threatened that the Russian army could attack a
    bridge over Prut River, in response to an alleged Ukrainian attack on one of
    the bridges connecting Kherson to the Ukrainian peninsula of Crimea annexed by
    Moscow 9 years ago. Chisinau has summoned the Russian ambassador to the
    Republic of Moldova, Oleg Vasnetsov, for explanations. Created on some of
    the eastern Romanian territories annexed by Stalin’s Soviet Union in 1940, the
    Republic of Moldova proclaimed its independence from Moscow in 1991.


    STOCK MARKET In Romania, the Association of Fund Administrators
    welcomed the historic decision to list Hidroelectrica, through the sale of the
    stake held by Proprietatea Fund. The Association chief, Horia Gustă, says the
    listing is a huge development opportunity for the Bucharest Stock Exchange, which
    thus consolidates its entry in the big league of European financial markets. Moreover,
    the company’s presence will attract significant sums of money and major
    international investment funds into Romania. In turn, Hidroelectrica’s CEO
    Bogdan Badea says he expects nearly EUR 10 bln in capitalisation.
    Hidroelectrica is the country’s largest electricity producer and it recently
    became one of the most important energy suppliers for households.


    IMMIGRANTS 43 foreign citizens were caught, Friday morning, trying
    to cross Romania’s western border illegally. They were hidden in a truck driven
    by a Romanian national, which was carrying parcels on the Romania-Hungary
    route. The authorities found that the people hidden among the goods are from
    Bangladesh, Pakistan, India and Sri Lanka. The foreigners are being
    investigated for attempted fraudulent crossing of the state border, and the truck
    driver for migrant trafficking.


    FOOD The large chain stores in Romania have agreed, in the framework
    of the dialogue started with the Government, that they could voluntarily reduce
    the shelf prices of 10 basic food categories. The announcement was made by
    Prime Minister Marcel Ciolacu, but talks will continue. In order for the
    reduction to be implemented, either a voluntary agreement of the sellers or an
    emergency ordinance is being considered, but in both cases, the prime minister promised
    that the government does not want to put pressure on Romanian producers.


    THEATRE The Sibiu International Theatre Festival began on Friday in
    central Romania. The event, which has a 30-year long tradition, brings to
    Romania 5,000 artists from 75 countries, in hundreds of events to be held until
    2 July.




    FOOTBALL On Saturday in Bucharest Romania takes on Ukraine,
    in Group B of the European Under-21 Football Championship, which it hosts
    together with Georgia. In the same group, Spain will play against Croatia. In
    the debut matches, the Under-21 national team was beaten 3-0 by Spain, while
    Ukraine defeated Croatia 2-0. The final tournament takes place between 21 June and
    8 July, and it brings together 16 teams, divided into four groups. Two are
    hosted by Romania, in Bucharest and Cluj-Napoca (north-west), and two by
    Georgia. Two quarter-finals and a semi-final will also take place in Romania.
    The top three finishers qualify for next year’s Olympic Games in Paris. Romania
    is at its 3rd consecutive participation in the competition, with a total
    of 4 final tournament presences, starting with 1998, when it hosted the final
    tournament for the first time. The country’s best performance was in 2019, when
    it reached the semi-finals, which secured the national team’s qualification in
    the Tokyo Olympics. (AMP)

  • Romanian stock market, on the rise

    Romanian stock market, on the rise

    Romania’s capital market went up 7.1%
    in the first 5 months of the year, as the number of investors hit a new record,
    the Bucharest Stock Exchange announced. The context is highly favourable for
    the upcoming listing of the country’s largest electricity producer, Hidroelectrica,
    which is expected to draw substantial capital as of July.


    Eight million Romanians will be
    able to benefit from the listing, thanks to the stock to be purchased by
    private pension funds, and a large number of business people will be able to invest
    directly in the company, the Bucharest Stock Exchange president Radu Hanga
    said.


    According to Hanga, Hidroelectrica’s
    standing and the size of the transaction, expected to reach some EUR 2 bln,
    indicates that the local stock market has grown to maturity, and the success of
    the operation will contribute significantly to strengthening the confidence of
    local entrepreneurs and investors in the potential of the Romanian capital
    market.


    The Hidroelectrica IPO (Initial
    Public Offering) will be the most important event in the forthcoming period
    for Romania, in economic terms as well as in terms of image, and one of the biggest
    in the world at the moment, the Bucharest Stock Exchange chief also said.


    Hanga explained that the transaction
    is critical for Romania, with significant implications for the country’s
    inclusion in the MSCI emerging markets index. At present, MSCI rates Romania as
    a frontier market, whereas the second-largest relevant company, the FTSE, upgraded
    Romania to secondary emerging market status in 2020.


    The sale by the Proprietatea Fund of
    its 20% share in Hidroelectrica takes place in a positive context. The number
    of investors in the Romanian stock market was over 141,000 at the end of the
    first quarter of 2023, compared to nearly 54,000 in 2019. This accounts for a 160%
    rise in the past 5 years.


    Also, overall listings with the
    Bucharest Stock Exchange amounted to over EUR 1.8 bln in the first 5 months of
    this year, in spite of international market volatility. As many as 7 corporate
    bond issues for a combined EUR 1 bln, and 5 Fidelis state bond issues totalling
    EUR 618 mln. were listed. Over the past 5 years, the Bucharest Stock Exchange
    has listed 163 financial instruments amounting to a combined EUR 8 bln,
    offering investors returns of over 100%. (AMP)